Correlation Between E Ink and Celxpert Energy
Can any of the company-specific risk be diversified away by investing in both E Ink and Celxpert Energy 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 E Ink and Celxpert Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Ink Holdings and Celxpert Energy, you can compare the effects of market volatilities on E Ink and Celxpert Energy 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 E Ink with a short position of Celxpert Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Ink and Celxpert Energy.
Diversification Opportunities for E Ink and Celxpert Energy
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 8069 and Celxpert is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding E Ink Holdings and Celxpert Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celxpert Energy and E Ink 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 E Ink Holdings are associated (or correlated) with Celxpert Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celxpert Energy has no effect on the direction of E Ink i.e., E Ink and Celxpert Energy go up and down completely randomly.
Pair Corralation between E Ink and Celxpert Energy
Assuming the 90 days trading horizon E Ink Holdings is expected to generate 0.97 times more return on investment than Celxpert Energy. However, E Ink Holdings is 1.03 times less risky than Celxpert Energy. It trades about 0.04 of its potential returns per unit of risk. Celxpert Energy is currently generating about 0.03 per unit of risk. If you would invest 20,472 in E Ink Holdings on September 12, 2024 and sell it today you would earn a total of 6,128 from holding E Ink Holdings or generate 29.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
E Ink Holdings vs. Celxpert Energy
Performance |
| Timeline |
| E Ink Holdings |
| Celxpert Energy |
E Ink and Celxpert Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Ink and Celxpert Energy
The main advantage of trading using opposite E Ink and Celxpert Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Ink position performs unexpectedly, Celxpert Energy 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 Celxpert Energy will offset losses from the drop in Celxpert Energy's long position.| E Ink vs. ANJI Technology Co | E Ink vs. Emerging Display Technologies | E Ink vs. U Tech Media Corp | E Ink vs. Ruentex Development Co |
| Celxpert Energy vs. China Metal Products | Celxpert Energy vs. Phytohealth Corp | Celxpert Energy vs. C Media Electronics | Celxpert Energy vs. Formosa Chemicals Fibre |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |