Correlation Between Globalstar and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Globalstar and Eshallgo 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 Globalstar and Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalstar and Eshallgo Class A, you can compare the effects of market volatilities on Globalstar and Eshallgo 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 Globalstar with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalstar and Eshallgo.
Diversification Opportunities for Globalstar and Eshallgo
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Globalstar and Eshallgo is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Globalstar and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and Globalstar 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 Globalstar are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Globalstar i.e., Globalstar and Eshallgo go up and down completely randomly.
Pair Corralation between Globalstar and Eshallgo
Given the investment horizon of 90 days Globalstar is expected to generate 1.16 times less return on investment than Eshallgo. In addition to that, Globalstar is 1.29 times more volatile than Eshallgo Class A. It trades about 0.26 of its total potential returns per unit of risk. Eshallgo Class A is currently generating about 0.4 per unit of volatility. If you would invest 211.00 in Eshallgo Class A on August 24, 2024 and sell it today you would earn a total of 188.00 from holding Eshallgo Class A or generate 89.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globalstar vs. Eshallgo Class A
Performance |
| Timeline |
| Globalstar |
| Eshallgo Class A |
Globalstar and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalstar and Eshallgo
The main advantage of trading using opposite Globalstar and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalstar position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| Globalstar vs. Eshallgo Class A | Globalstar vs. Amtech Systems | Globalstar vs. Gold Fields Ltd | Globalstar vs. Aegean Airlines SA |
| Eshallgo vs. Shake Shack | Eshallgo vs. Lululemon Athletica | Eshallgo vs. Playtika Holding Corp | Eshallgo vs. Haverty Furniture Companies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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