Correlation Between Dohome Public and E For
Can any of the company-specific risk be diversified away by investing in both Dohome Public and E For 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 Dohome Public and E For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dohome Public and E for L, you can compare the effects of market volatilities on Dohome Public and E For 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 Dohome Public with a short position of E For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dohome Public and E For.
Diversification Opportunities for Dohome Public and E For
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dohome and EFORL is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dohome Public and E for L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E for L and Dohome Public 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 Dohome Public are associated (or correlated) with E For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E for L has no effect on the direction of Dohome Public i.e., Dohome Public and E For go up and down completely randomly.
Pair Corralation between Dohome Public and E For
Assuming the 90 days trading horizon Dohome Public is expected to generate 44.08 times less return on investment than E For. But when comparing it to its historical volatility, Dohome Public is 3.95 times less risky than E For. It trades about 0.04 of its potential returns per unit of risk. E for L is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 13.00 in E for L on August 29, 2024 and sell it today you would earn a total of 16.00 from holding E for L or generate 123.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dohome Public vs. E for L
Performance |
| Timeline |
| Dohome Public |
| E for L |
Dohome Public and E For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dohome Public and E For
The main advantage of trading using opposite Dohome Public and E For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dohome Public position performs unexpectedly, E For 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 E For will offset losses from the drop in E For's long position.| Dohome Public vs. The Erawan Group | Dohome Public vs. Ditto Public | Dohome Public vs. Airports of Thailand | Dohome Public vs. Eastern Technical Engineering |
| E For vs. East Coast Furnitech | E For vs. Forth Smart Service | E For vs. Filter Vision Public | E For vs. ARIP Public |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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