Correlation Between Dear Cashmere and Epazz
Can any of the company-specific risk be diversified away by investing in both Dear Cashmere and Epazz 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 Dear Cashmere and Epazz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dear Cashmere Holding and Epazz Inc, you can compare the effects of market volatilities on Dear Cashmere and Epazz 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 Dear Cashmere with a short position of Epazz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dear Cashmere and Epazz.
Diversification Opportunities for Dear Cashmere and Epazz
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dear and Epazz is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dear Cashmere Holding and Epazz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epazz Inc and Dear Cashmere 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 Dear Cashmere Holding are associated (or correlated) with Epazz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epazz Inc has no effect on the direction of Dear Cashmere i.e., Dear Cashmere and Epazz go up and down completely randomly.
Pair Corralation between Dear Cashmere and Epazz
Given the investment horizon of 90 days Dear Cashmere Holding is expected to generate 0.92 times more return on investment than Epazz. However, Dear Cashmere Holding is 1.09 times less risky than Epazz. It trades about 0.07 of its potential returns per unit of risk. Epazz Inc is currently generating about 0.0 per unit of risk. If you would invest 17.00 in Dear Cashmere Holding on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Dear Cashmere Holding or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dear Cashmere Holding vs. Epazz Inc
Performance |
| Timeline |
| Dear Cashmere Holding |
| Epazz Inc |
Dear Cashmere and Epazz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dear Cashmere and Epazz
The main advantage of trading using opposite Dear Cashmere and Epazz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dear Cashmere position performs unexpectedly, Epazz 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 Epazz will offset losses from the drop in Epazz's long position.| Dear Cashmere vs. Nukkleus | Dear Cashmere vs. AB International Group | Dear Cashmere vs. APT Systems | Dear Cashmere vs. Protek Capital |
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 Stocks Directory module to find actively traded stocks across global markets.
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