Correlation Between Green World and Easywell Biomedicals
Can any of the company-specific risk be diversified away by investing in both Green World and Easywell Biomedicals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Green World and Easywell Biomedicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Easywell Biomedicals, you can compare the effects of market volatilities on Green World and Easywell Biomedicals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Green World with a short position of Easywell Biomedicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Easywell Biomedicals.
Diversification Opportunities for Green World and Easywell Biomedicals
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Green and Easywell is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Easywell Biomedicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easywell Biomedicals and Green World is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Green World Fintech are associated (or correlated) with Easywell Biomedicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easywell Biomedicals has no effect on the direction of Green World i.e., Green World and Easywell Biomedicals go up and down completely randomly.
Pair Corralation between Green World and Easywell Biomedicals
Assuming the 90 days trading horizon Green World Fintech is expected to generate 1.18 times more return on investment than Easywell Biomedicals. However, Green World is 1.18 times more volatile than Easywell Biomedicals. It trades about 0.3 of its potential returns per unit of risk. Easywell Biomedicals is currently generating about 0.21 per unit of risk. If you would invest 6,230 in Green World Fintech on November 27, 2024 and sell it today you would earn a total of 1,150 from holding Green World Fintech or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green World Fintech vs. Easywell Biomedicals
Performance |
| Timeline |
| Green World Fintech |
| Easywell Biomedicals |
Green World and Easywell Biomedicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green World and Easywell Biomedicals
The main advantage of trading using opposite Green World and Easywell Biomedicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Easywell Biomedicals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Easywell Biomedicals will offset losses from the drop in Easywell Biomedicals' long position.| Green World vs. Tainet Communication System | Green World vs. Cameo Communications | Green World vs. Emerging Display Technologies | Green World vs. WinMate Communication INC |
| Easywell Biomedicals vs. Universal Vision Biotechnology | Easywell Biomedicals vs. Excelsior Medical Co | Easywell Biomedicals vs. Delta Asia International | Easywell Biomedicals vs. Hi Clearance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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