Correlation Between Eestech and Puration
Can any of the company-specific risk be diversified away by investing in both Eestech and Puration 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 Eestech and Puration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eestech and Puration, you can compare the effects of market volatilities on Eestech and Puration 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 Eestech with a short position of Puration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eestech and Puration.
Diversification Opportunities for Eestech and Puration
Pay attention - limited upside
The 3 months correlation between Eestech and Puration is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eestech and Puration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puration and Eestech 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 Eestech are associated (or correlated) with Puration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puration has no effect on the direction of Eestech i.e., Eestech and Puration go up and down completely randomly.
Pair Corralation between Eestech and Puration
If you would invest 6.00 in Eestech on September 2, 2024 and sell it today you would lose (5.96) from holding Eestech or give up 99.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.43% |
| Values | Daily Returns |
Eestech vs. Puration
Performance |
| Timeline |
| Eestech |
| Puration |
Eestech and Puration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eestech and Puration
The main advantage of trading using opposite Eestech and Puration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eestech position performs unexpectedly, Puration 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 Puration will offset losses from the drop in Puration's long position.| Eestech vs. Seychelle Environmtl | Eestech vs. Energy and Water | Eestech vs. One World Universe | Eestech vs. Bion Environmental Technologies |
| Puration vs. Eestech | Puration vs. Bion Environmental Technologies | Puration vs. TOMI Environmental Solutions |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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