Correlation Between E Ink and Data International
Can any of the company-specific risk be diversified away by investing in both E Ink and Data International 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 Data International 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 Data International Co, you can compare the effects of market volatilities on E Ink and Data International 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 Data International. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Ink and Data International.
Diversification Opportunities for E Ink and Data International
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 8069 and Data is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding E Ink Holdings and Data International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data International 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 Data International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data International has no effect on the direction of E Ink i.e., E Ink and Data International go up and down completely randomly.
Pair Corralation between E Ink and Data International
Assuming the 90 days trading horizon E Ink Holdings is expected to generate 0.84 times more return on investment than Data International. However, E Ink Holdings is 1.18 times less risky than Data International. It trades about -0.14 of its potential returns per unit of risk. Data International Co is currently generating about -0.41 per unit of risk. If you would invest 30,600 in E Ink Holdings on September 1, 2024 and sell it today you would lose (2,500) from holding E Ink Holdings or give up 8.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Ink Holdings vs. Data International Co
Performance |
| Timeline |
| E Ink Holdings |
| Data International |
E Ink and Data International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Ink and Data International
The main advantage of trading using opposite E Ink and Data International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Ink position performs unexpectedly, Data International 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 Data International will offset losses from the drop in Data International's long position.| E Ink vs. Hon Hai Precision | E Ink vs. Delta Electronics | E Ink vs. LARGAN Precision Co | E Ink vs. Yageo Corp |
| Data International vs. ReaLy Development Construction | Data International vs. Oceanic Beverages Co | Data International vs. Fulin Plastic Industry | Data International vs. Huang Hsiang Construction |
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.
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