Correlation Between Ever Glory and Leisure Fund
Can any of the company-specific risk be diversified away by investing in both Ever Glory and Leisure Fund 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 Ever Glory and Leisure Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ever Glory International Group and Leisure Fund Investor, you can compare the effects of market volatilities on Ever Glory and Leisure Fund 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 Ever Glory with a short position of Leisure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ever Glory and Leisure Fund.
Diversification Opportunities for Ever Glory and Leisure Fund
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ever and Leisure is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ever Glory International Group and Leisure Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leisure Fund Investor and Ever Glory 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 Ever Glory International Group are associated (or correlated) with Leisure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leisure Fund Investor has no effect on the direction of Ever Glory i.e., Ever Glory and Leisure Fund go up and down completely randomly.
Pair Corralation between Ever Glory and Leisure Fund
If you would invest 9,052 in Leisure Fund Investor on September 2, 2024 and sell it today you would earn a total of 728.00 from holding Leisure Fund Investor or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ever Glory International Group vs. Leisure Fund Investor
Performance |
| Timeline |
| Ever Glory Internati |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Leisure Fund Investor |
Ever Glory and Leisure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ever Glory and Leisure Fund
The main advantage of trading using opposite Ever Glory and Leisure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ever Glory position performs unexpectedly, Leisure Fund 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 Leisure Fund will offset losses from the drop in Leisure Fund's long position.| Ever Glory vs. Everspin Technologies | Ever Glory vs. IPG Photonics | Ever Glory vs. Analog Devices | Ever Glory vs. Elmos Semiconductor SE |
| Leisure Fund vs. Retailing Fund Investor | Leisure Fund vs. Financial Services Fund | Leisure Fund vs. Banking Fund Investor | Leisure Fund vs. Health Care Fund |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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