Correlation Between Ever Glory and TriMas
Can any of the company-specific risk be diversified away by investing in both Ever Glory and TriMas 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 TriMas 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 TriMas, you can compare the effects of market volatilities on Ever Glory and TriMas 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 TriMas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ever Glory and TriMas.
Diversification Opportunities for Ever Glory and TriMas
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ever and TriMas is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ever Glory International Group and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas 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 TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of Ever Glory i.e., Ever Glory and TriMas go up and down completely randomly.
Pair Corralation between Ever Glory and TriMas
If you would invest 16.00 in Ever Glory International Group on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Ever Glory International Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Ever Glory International Group vs. TriMas
Performance |
| Timeline |
| Ever Glory Internati |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TriMas |
Ever Glory and TriMas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ever Glory and TriMas
The main advantage of trading using opposite Ever Glory and TriMas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ever Glory position performs unexpectedly, TriMas 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 TriMas will offset losses from the drop in TriMas' long position.| Ever Glory vs. Harmony Gold Mining | Ever Glory vs. Highway Holdings Limited | Ever Glory vs. Volaris | Ever Glory vs. Sun Country Airlines |
| TriMas vs. Greif Bros | TriMas vs. Karat Packaging | TriMas vs. Reynolds Consumer Products | TriMas vs. Silgan Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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