Correlation Between Eshallgo and Linde Plc
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Linde Plc 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 Linde Plc 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 Linde plc Ordinary, you can compare the effects of market volatilities on Eshallgo and Linde Plc 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 Linde Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Linde Plc.
Diversification Opportunities for Eshallgo and Linde Plc
Pay attention - limited upside
The 3 months correlation between Eshallgo and Linde is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Linde plc Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linde plc Ordinary 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 Linde Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linde plc Ordinary has no effect on the direction of Eshallgo i.e., Eshallgo and Linde Plc go up and down completely randomly.
Pair Corralation between Eshallgo and Linde Plc
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 7.66 times more return on investment than Linde Plc. However, Eshallgo is 7.66 times more volatile than Linde plc Ordinary. It trades about 0.33 of its potential returns per unit of risk. Linde plc Ordinary is currently generating about -0.18 per unit of risk. If you would invest 236.00 in Eshallgo Class A on August 28, 2024 and sell it today you would earn a total of 156.00 from holding Eshallgo Class A or generate 66.1% 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. Linde plc Ordinary
Performance |
| Timeline |
| Eshallgo Class A |
| Linde plc Ordinary |
Eshallgo and Linde Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Linde Plc
The main advantage of trading using opposite Eshallgo and Linde Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Linde Plc 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 Linde Plc will offset losses from the drop in Linde Plc's long position.| Eshallgo vs. Lululemon Athletica | Eshallgo vs. Asbury Automotive Group | Eshallgo vs. SunLink Health Systems | Eshallgo vs. Simon Property Group |
| Linde Plc vs. PPG Industries | Linde Plc vs. Ecolab Inc | Linde Plc vs. Sherwin Williams Co | Linde Plc vs. LyondellBasell Industries NV |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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