Correlation Between Eagle Cold and Hi Clearance
Can any of the company-specific risk be diversified away by investing in both Eagle Cold and Hi Clearance 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 Eagle Cold and Hi Clearance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Cold Storage and Hi Clearance, you can compare the effects of market volatilities on Eagle Cold and Hi Clearance 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 Eagle Cold with a short position of Hi Clearance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Cold and Hi Clearance.
Diversification Opportunities for Eagle Cold and Hi Clearance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eagle and 1788 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Cold Storage and Hi Clearance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Clearance and Eagle Cold 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 Eagle Cold Storage are associated (or correlated) with Hi Clearance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Clearance has no effect on the direction of Eagle Cold i.e., Eagle Cold and Hi Clearance go up and down completely randomly.
Pair Corralation between Eagle Cold and Hi Clearance
Assuming the 90 days trading horizon Eagle Cold Storage is expected to generate 3.03 times more return on investment than Hi Clearance. However, Eagle Cold is 3.03 times more volatile than Hi Clearance. It trades about 0.32 of its potential returns per unit of risk. Hi Clearance is currently generating about -0.06 per unit of risk. If you would invest 2,980 in Eagle Cold Storage on October 8, 2024 and sell it today you would earn a total of 160.00 from holding Eagle Cold Storage or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Cold Storage vs. Hi Clearance
Performance |
| Timeline |
| Eagle Cold Storage |
| Hi Clearance |
Eagle Cold and Hi Clearance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Cold and Hi Clearance
The main advantage of trading using opposite Eagle Cold and Hi Clearance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Cold position performs unexpectedly, Hi Clearance 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 Hi Clearance will offset losses from the drop in Hi Clearance's long position.| Eagle Cold vs. Uni President Enterprises Corp | Eagle Cold vs. Tingyi Holding Corp | Eagle Cold vs. Lien Hwa Industrial | Eagle Cold vs. Great Wall Enterprise |
| Hi Clearance vs. United Orthopedic | Hi Clearance vs. TTY Biopharm Co | Hi Clearance vs. Apex Biotechnology Corp | Hi Clearance vs. Information Technology Total |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |