Correlation Between Eshallgo and Veeco Instruments
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Veeco Instruments 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 Veeco Instruments 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 Veeco Instruments, you can compare the effects of market volatilities on Eshallgo and Veeco Instruments 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 Veeco Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Veeco Instruments.
Diversification Opportunities for Eshallgo and Veeco Instruments
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eshallgo and Veeco is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Veeco Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veeco Instruments 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 Veeco Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veeco Instruments has no effect on the direction of Eshallgo i.e., Eshallgo and Veeco Instruments go up and down completely randomly.
Pair Corralation between Eshallgo and Veeco Instruments
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 4.37 times more return on investment than Veeco Instruments. However, Eshallgo is 4.37 times more volatile than Veeco Instruments. It trades about 0.4 of its potential returns per unit of risk. Veeco Instruments is currently generating about -0.2 per unit of risk. If you would invest 211.00 in Eshallgo Class A on August 24, 2024 and sell it today you would earn a total of 188.00 from holding Eshallgo Class A or generate 89.1% 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. Veeco Instruments
Performance |
| Timeline |
| Eshallgo Class A |
| Veeco Instruments |
Eshallgo and Veeco Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Veeco Instruments
The main advantage of trading using opposite Eshallgo and Veeco Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Veeco Instruments 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 Veeco Instruments will offset losses from the drop in Veeco Instruments' long position.| Eshallgo vs. Shake Shack | Eshallgo vs. Lululemon Athletica | Eshallgo vs. Playtika Holding Corp | Eshallgo vs. Haverty Furniture Companies |
| Veeco Instruments vs. Ultra Clean Holdings | Veeco Instruments vs. Cohu Inc | Veeco Instruments vs. Ichor Holdings | Veeco Instruments vs. Entegris |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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