Correlation Between Eastern Technical and Moshi Moshi
Can any of the company-specific risk be diversified away by investing in both Eastern Technical and Moshi Moshi 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 Eastern Technical and Moshi Moshi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Technical Engineering and Moshi Moshi Retail, you can compare the effects of market volatilities on Eastern Technical and Moshi Moshi 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 Eastern Technical with a short position of Moshi Moshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Technical and Moshi Moshi.
Diversification Opportunities for Eastern Technical and Moshi Moshi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Moshi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Technical Engineering and Moshi Moshi Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moshi Moshi Retail and Eastern Technical 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 Eastern Technical Engineering are associated (or correlated) with Moshi Moshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moshi Moshi Retail has no effect on the direction of Eastern Technical i.e., Eastern Technical and Moshi Moshi go up and down completely randomly.
Pair Corralation between Eastern Technical and Moshi Moshi
Assuming the 90 days trading horizon Eastern Technical is expected to generate 1.03 times less return on investment than Moshi Moshi. In addition to that, Eastern Technical is 1.0 times more volatile than Moshi Moshi Retail. It trades about 0.04 of its total potential returns per unit of risk. Moshi Moshi Retail is currently generating about 0.04 per unit of volatility. If you would invest 3,965 in Moshi Moshi Retail on August 27, 2024 and sell it today you would earn a total of 785.00 from holding Moshi Moshi Retail or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Technical Engineering vs. Moshi Moshi Retail
Performance |
| Timeline |
| Eastern Technical |
| Moshi Moshi Retail |
Eastern Technical and Moshi Moshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Technical and Moshi Moshi
The main advantage of trading using opposite Eastern Technical and Moshi Moshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Technical position performs unexpectedly, Moshi Moshi 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 Moshi Moshi will offset losses from the drop in Moshi Moshi's long position.| Eastern Technical vs. G Capital Public | Eastern Technical vs. Harn Engineering Solutions | Eastern Technical vs. Fortune Parts Industry | Eastern Technical vs. Hydrotek Public |
| Moshi Moshi vs. The Erawan Group | Moshi Moshi vs. Airports of Thailand | Moshi Moshi vs. Eastern Technical Engineering | Moshi Moshi vs. Pylon Public |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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