Correlation Between Eshallgo and Willis Lease
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Willis Lease 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 Willis Lease 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 Willis Lease Finance, you can compare the effects of market volatilities on Eshallgo and Willis Lease 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 Willis Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Willis Lease.
Diversification Opportunities for Eshallgo and Willis Lease
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eshallgo and Willis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Willis Lease Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willis Lease Finance 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 Willis Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willis Lease Finance has no effect on the direction of Eshallgo i.e., Eshallgo and Willis Lease go up and down completely randomly.
Pair Corralation between Eshallgo and Willis Lease
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 1.39 times more return on investment than Willis Lease. However, Eshallgo is 1.39 times more volatile than Willis Lease Finance. It trades about 0.31 of its potential returns per unit of risk. Willis Lease Finance is currently generating about 0.12 per unit of risk. If you would invest 233.00 in Eshallgo Class A on August 26, 2024 and sell it today you would earn a total of 142.00 from holding Eshallgo Class A or generate 60.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. Willis Lease Finance
Performance |
| Timeline |
| Eshallgo Class A |
| Willis Lease Finance |
Eshallgo and Willis Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Willis Lease
The main advantage of trading using opposite Eshallgo and Willis Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Willis Lease 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 Willis Lease will offset losses from the drop in Willis Lease's long position.| Eshallgo vs. Cumberland Pharmaceuticals | Eshallgo vs. Merit Medical Systems | Eshallgo vs. LENSAR Inc | Eshallgo vs. Cardinal Health |
| Willis Lease vs. PROG Holdings | Willis Lease vs. McGrath RentCorp | Willis Lease vs. Mega Matrix Corp | Willis Lease vs. FTAI Aviation Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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