Correlation Between Eshallgo and KLA Tencor
Can any of the company-specific risk be diversified away by investing in both Eshallgo and KLA Tencor 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 KLA Tencor 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 KLA Tencor, you can compare the effects of market volatilities on Eshallgo and KLA Tencor 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 KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and KLA Tencor.
Diversification Opportunities for Eshallgo and KLA Tencor
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eshallgo and KLA is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor 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 KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Eshallgo i.e., Eshallgo and KLA Tencor go up and down completely randomly.
Pair Corralation between Eshallgo and KLA Tencor
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 4.12 times more return on investment than KLA Tencor. However, Eshallgo is 4.12 times more volatile than KLA Tencor. It trades about 0.31 of its potential returns per unit of risk. KLA Tencor is currently generating about -0.1 per unit of risk. If you would invest 233.00 in Eshallgo Class A on August 26, 2024 and sell it today you would earn a total of 142.00 from holding Eshallgo Class A or generate 60.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. KLA Tencor
Performance |
| Timeline |
| Eshallgo Class A |
| KLA Tencor |
Eshallgo and KLA Tencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and KLA Tencor
The main advantage of trading using opposite Eshallgo and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, KLA Tencor 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 KLA Tencor will offset losses from the drop in KLA Tencor's long position.| Eshallgo vs. Cumberland Pharmaceuticals | Eshallgo vs. Merit Medical Systems | Eshallgo vs. LENSAR Inc | Eshallgo vs. Cardinal Health |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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