Correlation Between Eshallgo and Zepp Health
Can any of the company-specific risk be diversified away by investing in both Eshallgo and Zepp Health 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 Zepp Health 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 Zepp Health Corp, you can compare the effects of market volatilities on Eshallgo and Zepp Health 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 Zepp Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Zepp Health.
Diversification Opportunities for Eshallgo and Zepp Health
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eshallgo and Zepp is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Zepp Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zepp Health Corp 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 Zepp Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zepp Health Corp has no effect on the direction of Eshallgo i.e., Eshallgo and Zepp Health go up and down completely randomly.
Pair Corralation between Eshallgo and Zepp Health
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 21.61 times more return on investment than Zepp Health. However, Eshallgo is 21.61 times more volatile than Zepp Health Corp. It trades about 0.1 of its potential returns per unit of risk. Zepp Health Corp is currently generating about -0.02 per unit of risk. If you would invest 0.00 in Eshallgo Class A on August 24, 2024 and sell it today you would earn a total of 375.00 from holding Eshallgo Class A or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 20.77% |
| Values | Daily Returns |
Eshallgo Class A vs. Zepp Health Corp
Performance |
| Timeline |
| Eshallgo Class A |
| Zepp Health Corp |
Eshallgo and Zepp Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Zepp Health
The main advantage of trading using opposite Eshallgo and Zepp Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, Zepp Health 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 Zepp Health will offset losses from the drop in Zepp Health's long position.| Eshallgo vs. Shake Shack | Eshallgo vs. Lululemon Athletica | Eshallgo vs. Playtika Holding Corp | Eshallgo vs. Haverty Furniture Companies |
| Zepp Health vs. VOXX International | Zepp Health vs. LG Display Co | Zepp Health vs. Vizio Holding Corp | Zepp Health vs. Turtle Beach Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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