Correlation Between Eshallgo and Pinstripes Holdings
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Pinstripes Holdings 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 Pinstripes Holdings 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 Pinstripes Holdings, you can compare the effects of market volatilities on Eshallgo and Pinstripes Holdings 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 Pinstripes Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Pinstripes Holdings.
Diversification Opportunities for Eshallgo and Pinstripes Holdings
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eshallgo and Pinstripes is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Pinstripes Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinstripes Holdings 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 Pinstripes Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinstripes Holdings has no effect on the direction of Eshallgo i.e., Eshallgo and Pinstripes Holdings go up and down completely randomly.
Pair Corralation between Eshallgo and Pinstripes Holdings
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 1.24 times more return on investment than Pinstripes Holdings. However, Eshallgo is 1.24 times more volatile than Pinstripes Holdings. It trades about 0.32 of its potential returns per unit of risk. Pinstripes Holdings is currently generating about 0.05 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 | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eshallgo Class A vs. Pinstripes Holdings
Performance |
| Timeline |
| Eshallgo Class A |
| Pinstripes Holdings |
Eshallgo and Pinstripes Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Pinstripes Holdings
The main advantage of trading using opposite Eshallgo and Pinstripes Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Pinstripes Holdings 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 Pinstripes Holdings will offset losses from the drop in Pinstripes Holdings' long position.| Eshallgo vs. Algoma Steel Group | Eshallgo vs. Newpark Resources | Eshallgo vs. EMCOR Group | Eshallgo vs. Grupo Simec SAB |
| Pinstripes Holdings vs. Diageo PLC ADR | Pinstripes Holdings vs. Willamette Valley Vineyards | Pinstripes Holdings vs. WEBTOON Entertainment Common | Pinstripes Holdings vs. 17 Education Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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