Correlation Between China Galaxy and EBullion
Can any of the company-specific risk be diversified away by investing in both China Galaxy and EBullion 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 China Galaxy and EBullion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Galaxy Securities and EBullion, you can compare the effects of market volatilities on China Galaxy and EBullion 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 China Galaxy with a short position of EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Galaxy and EBullion.
Diversification Opportunities for China Galaxy and EBullion
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and EBullion is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Galaxy Securities and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion and China Galaxy 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 China Galaxy Securities are associated (or correlated) with EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of China Galaxy i.e., China Galaxy and EBullion go up and down completely randomly.
Pair Corralation between China Galaxy and EBullion
Assuming the 90 days horizon China Galaxy is expected to generate 15.23 times less return on investment than EBullion. But when comparing it to its historical volatility, China Galaxy Securities is 8.88 times less risky than EBullion. It trades about 0.02 of its potential returns per unit of risk. EBullion is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.50 in EBullion on August 29, 2024 and sell it today you would lose (0.38) from holding EBullion or give up 76.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 38.52% |
| Values | Daily Returns |
China Galaxy Securities vs. EBullion
Performance |
| Timeline |
| China Galaxy Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Galaxy and EBullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Galaxy and EBullion
The main advantage of trading using opposite China Galaxy and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Galaxy position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion's long position.| China Galaxy vs. Evercore Partners | China Galaxy vs. Lazard | China Galaxy vs. Moelis Co | China Galaxy vs. PJT Partners |
| EBullion vs. SPENN Technology AS | EBullion vs. Arcane Crypto AB | EBullion vs. OFX Group Ltd | EBullion vs. Blockmate Ventures |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |