Correlation Between EZGO Technologies and Sacks Parente
Can any of the company-specific risk be diversified away by investing in both EZGO Technologies and Sacks Parente 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 EZGO Technologies and Sacks Parente into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EZGO Technologies and Sacks Parente Golf,, you can compare the effects of market volatilities on EZGO Technologies and Sacks Parente 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 EZGO Technologies with a short position of Sacks Parente. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZGO Technologies and Sacks Parente.
Diversification Opportunities for EZGO Technologies and Sacks Parente
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EZGO and Sacks is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding EZGO Technologies and Sacks Parente Golf, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacks Parente Golf, and EZGO Technologies 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 EZGO Technologies are associated (or correlated) with Sacks Parente. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacks Parente Golf, has no effect on the direction of EZGO Technologies i.e., EZGO Technologies and Sacks Parente go up and down completely randomly.
Pair Corralation between EZGO Technologies and Sacks Parente
Given the investment horizon of 90 days EZGO Technologies is expected to generate 0.75 times more return on investment than Sacks Parente. However, EZGO Technologies is 1.34 times less risky than Sacks Parente. It trades about -0.05 of its potential returns per unit of risk. Sacks Parente Golf, is currently generating about -0.08 per unit of risk. If you would invest 177.00 in EZGO Technologies on August 31, 2024 and sell it today you would lose (79.00) from holding EZGO Technologies or give up 44.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EZGO Technologies vs. Sacks Parente Golf,
Performance |
| Timeline |
| EZGO Technologies |
| Sacks Parente Golf, |
EZGO Technologies and Sacks Parente Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EZGO Technologies and Sacks Parente
The main advantage of trading using opposite EZGO Technologies and Sacks Parente positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZGO Technologies position performs unexpectedly, Sacks Parente 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 Sacks Parente will offset losses from the drop in Sacks Parente's long position.| EZGO Technologies vs. Vision Marine Technologies | EZGO Technologies vs. Marine Products | EZGO Technologies vs. Thor Industries | EZGO Technologies vs. BRP Inc |
| Sacks Parente vs. Algorhythm Holdings, | Sacks Parente vs. Arlo Technologies | Sacks Parente vs. Trugolf | Sacks Parente vs. Empire State Realty |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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