Correlation Between Espey Mfg and Dais Analytic
Can any of the company-specific risk be diversified away by investing in both Espey Mfg and Dais Analytic 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 Espey Mfg and Dais Analytic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Espey Mfg Electronics and Dais Analytic Corp, you can compare the effects of market volatilities on Espey Mfg and Dais Analytic 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 Espey Mfg with a short position of Dais Analytic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Espey Mfg and Dais Analytic.
Diversification Opportunities for Espey Mfg and Dais Analytic
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Espey and Dais is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Espey Mfg Electronics and Dais Analytic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dais Analytic Corp and Espey Mfg 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 Espey Mfg Electronics are associated (or correlated) with Dais Analytic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dais Analytic Corp has no effect on the direction of Espey Mfg i.e., Espey Mfg and Dais Analytic go up and down completely randomly.
Pair Corralation between Espey Mfg and Dais Analytic
Considering the 90-day investment horizon Espey Mfg Electronics is expected to under-perform the Dais Analytic. But the stock apears to be less risky and, when comparing its historical volatility, Espey Mfg Electronics is 10.27 times less risky than Dais Analytic. The stock trades about -0.09 of its potential returns per unit of risk. The Dais Analytic Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Dais Analytic Corp on September 2, 2024 and sell it today you would earn a total of 0.01 from holding Dais Analytic Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Espey Mfg Electronics vs. Dais Analytic Corp
Performance |
| Timeline |
| Espey Mfg Electronics |
| Dais Analytic Corp |
Espey Mfg and Dais Analytic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Espey Mfg and Dais Analytic
The main advantage of trading using opposite Espey Mfg and Dais Analytic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Espey Mfg position performs unexpectedly, Dais Analytic 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 Dais Analytic will offset losses from the drop in Dais Analytic's long position.| Espey Mfg vs. Chicago Rivet Machine | Espey Mfg vs. Eastern Co | Espey Mfg vs. Servotronics | Espey Mfg vs. Evans Bancorp |
| Dais Analytic vs. AFC Energy plc | Dais Analytic vs. Sunrise New Energy | Dais Analytic vs. Energizer Holdings | Dais Analytic vs. Alfen NV |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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