Correlation Between Eminent Luggage and Long Bon
Can any of the company-specific risk be diversified away by investing in both Eminent Luggage and Long Bon 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 Eminent Luggage and Long Bon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eminent Luggage and Long Bon International, you can compare the effects of market volatilities on Eminent Luggage and Long Bon 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 Eminent Luggage with a short position of Long Bon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eminent Luggage and Long Bon.
Diversification Opportunities for Eminent Luggage and Long Bon
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eminent and Long is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Eminent Luggage and Long Bon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Bon International and Eminent Luggage 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 Eminent Luggage are associated (or correlated) with Long Bon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Bon International has no effect on the direction of Eminent Luggage i.e., Eminent Luggage and Long Bon go up and down completely randomly.
Pair Corralation between Eminent Luggage and Long Bon
Assuming the 90 days trading horizon Eminent Luggage is expected to generate 3.31 times more return on investment than Long Bon. However, Eminent Luggage is 3.31 times more volatile than Long Bon International. It trades about 0.34 of its potential returns per unit of risk. Long Bon International is currently generating about -0.34 per unit of risk. If you would invest 1,335 in Eminent Luggage on September 23, 2024 and sell it today you would earn a total of 350.00 from holding Eminent Luggage or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eminent Luggage vs. Long Bon International
Performance |
| Timeline |
| Eminent Luggage |
| Long Bon International |
Eminent Luggage and Long Bon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eminent Luggage and Long Bon
The main advantage of trading using opposite Eminent Luggage and Long Bon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eminent Luggage position performs unexpectedly, Long Bon 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 Long Bon will offset losses from the drop in Long Bon's long position.| Eminent Luggage vs. Feng Tay Enterprises | Eminent Luggage vs. Pou Chen Corp | Eminent Luggage vs. Fulgent Sun International | Eminent Luggage vs. Paiho Shih Holdings |
| Long Bon vs. Hung Sheng Construction | Long Bon vs. Chainqui Construction Development | Long Bon vs. BES Engineering Co | Long Bon vs. Sincere Navigation Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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