Correlation Between Eshallgo and Coty
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Coty 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 Coty 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 Coty Inc, you can compare the effects of market volatilities on Eshallgo and Coty 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 Coty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Coty.
Diversification Opportunities for Eshallgo and Coty
Pay attention - limited upside
The 3 months correlation between Eshallgo and Coty is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Coty Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coty Inc 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 Coty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coty Inc has no effect on the direction of Eshallgo i.e., Eshallgo and Coty go up and down completely randomly.
Pair Corralation between Eshallgo and Coty
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 48.28 times more return on investment than Coty. However, Eshallgo is 48.28 times more volatile than Coty Inc. It trades about 0.1 of its potential returns per unit of risk. Coty Inc is currently generating about 0.0 per unit of risk. If you would invest 0.00 in Eshallgo Class A on August 24, 2024 and sell it today you would earn a total of 375.00 from holding Eshallgo Class A or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 20.77% |
| Values | Daily Returns |
Eshallgo Class A vs. Coty Inc
Performance |
| Timeline |
| Eshallgo Class A |
| Coty Inc |
Eshallgo and Coty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Coty
The main advantage of trading using opposite Eshallgo and Coty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Coty 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 Coty will offset losses from the drop in Coty's long position.| Eshallgo vs. Shake Shack | Eshallgo vs. Lululemon Athletica | Eshallgo vs. Playtika Holding Corp | Eshallgo vs. Haverty Furniture Companies |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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