Correlation Between Eshallgo and Celestica
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Celestica 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 Eshallgo and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eshallgo Class A and Celestica, you can compare the effects of market volatilities on Eshallgo and Celestica 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 Eshallgo with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Celestica.
Diversification Opportunities for Eshallgo and Celestica
Almost no diversification
The 3 months correlation between Eshallgo and Celestica is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Eshallgo 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 Eshallgo Class A are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Eshallgo i.e., Eshallgo and Celestica go up and down completely randomly.
Pair Corralation between Eshallgo and Celestica
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 2.31 times more return on investment than Celestica. However, Eshallgo is 2.31 times more volatile than Celestica. It trades about 0.19 of its potential returns per unit of risk. Celestica is currently generating about 0.27 per unit of risk. If you would invest 312.00 in Eshallgo Class A on August 31, 2024 and sell it today you would earn a total of 88.00 from holding Eshallgo Class A or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. Celestica
Performance |
| Timeline |
| Eshallgo Class A |
| Celestica |
Eshallgo and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Celestica
The main advantage of trading using opposite Eshallgo and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Eshallgo vs. ServiceNow | Eshallgo vs. Ecolab Inc | Eshallgo vs. Sensient Technologies | Eshallgo vs. Analog Devices |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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