Correlation Between Eshallgo and Trinseo SA
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Trinseo SA 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 Trinseo SA 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 Trinseo SA, you can compare the effects of market volatilities on Eshallgo and Trinseo SA 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 Trinseo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Trinseo SA.
Diversification Opportunities for Eshallgo and Trinseo SA
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eshallgo and Trinseo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Trinseo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinseo SA 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 Trinseo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinseo SA has no effect on the direction of Eshallgo i.e., Eshallgo and Trinseo SA go up and down completely randomly.
Pair Corralation between Eshallgo and Trinseo SA
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 1.0 times more return on investment than Trinseo SA. However, Eshallgo Class A is 1.0 times less risky than Trinseo SA. It trades about 0.19 of its potential returns per unit of risk. Trinseo SA is currently generating about 0.01 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. Trinseo SA
Performance |
| Timeline |
| Eshallgo Class A |
| Trinseo SA |
Eshallgo and Trinseo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Trinseo SA
The main advantage of trading using opposite Eshallgo and Trinseo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Trinseo SA 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 Trinseo SA will offset losses from the drop in Trinseo SA's long position.| Eshallgo vs. Lululemon Athletica | Eshallgo vs. Asbury Automotive Group | Eshallgo vs. SunLink Health Systems | Eshallgo vs. Simon Property Group |
| Trinseo SA vs. Quaker Chemical | Trinseo SA vs. Minerals Technologies | Trinseo SA vs. Innospec | Trinseo SA vs. H B Fuller |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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