Correlation Between Eshallgo and Suncor Energy
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Suncor Energy 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 Suncor Energy 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 Suncor Energy, you can compare the effects of market volatilities on Eshallgo and Suncor Energy 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 Suncor Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Suncor Energy.
Diversification Opportunities for Eshallgo and Suncor Energy
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eshallgo and Suncor is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Suncor Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncor Energy 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 Suncor Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncor Energy has no effect on the direction of Eshallgo i.e., Eshallgo and Suncor Energy go up and down completely randomly.
Pair Corralation between Eshallgo and Suncor Energy
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 4.26 times more return on investment than Suncor Energy. However, Eshallgo is 4.26 times more volatile than Suncor Energy. It trades about 0.19 of its potential returns per unit of risk. Suncor Energy is currently generating about 0.02 per unit of risk. If you would invest 202.00 in Eshallgo Class A on August 28, 2024 and sell it today you would earn a total of 190.00 from holding Eshallgo Class A or generate 94.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. Suncor Energy
Performance |
| Timeline |
| Eshallgo Class A |
| Suncor Energy |
Eshallgo and Suncor Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Suncor Energy
The main advantage of trading using opposite Eshallgo and Suncor Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Suncor Energy 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 Suncor Energy will offset losses from the drop in Suncor Energy's long position.| Eshallgo vs. Lululemon Athletica | Eshallgo vs. Asbury Automotive Group | Eshallgo vs. SunLink Health Systems | Eshallgo vs. Simon Property Group |
| Suncor Energy vs. Imperial Oil | Suncor Energy vs. Ecopetrol SA ADR | Suncor Energy vs. Petroleo Brasileiro Petrobras | Suncor Energy vs. Equinor ASA ADR |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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