Correlation Between International Paper and Ever Glory
Can any of the company-specific risk be diversified away by investing in both International Paper and Ever Glory 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 International Paper and Ever Glory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Paper and Ever Glory International Group, you can compare the effects of market volatilities on International Paper and Ever Glory 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 International Paper with a short position of Ever Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Paper and Ever Glory.
Diversification Opportunities for International Paper and Ever Glory
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Ever is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding International Paper and Ever Glory International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Glory Internati and International Paper 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 International Paper are associated (or correlated) with Ever Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Glory Internati has no effect on the direction of International Paper i.e., International Paper and Ever Glory go up and down completely randomly.
Pair Corralation between International Paper and Ever Glory
If you would invest 4,825 in International Paper on August 28, 2024 and sell it today you would earn a total of 1,132 from holding International Paper or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
International Paper vs. Ever Glory International Group
Performance |
| Timeline |
| International Paper |
| Ever Glory Internati |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Paper and Ever Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Paper and Ever Glory
The main advantage of trading using opposite International Paper and Ever Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Paper position performs unexpectedly, Ever Glory 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 Ever Glory will offset losses from the drop in Ever Glory's long position.| International Paper vs. Sealed Air | International Paper vs. Avery Dennison Corp | International Paper vs. Sonoco Products | International Paper vs. Ball Corporation |
| Ever Glory vs. Delta Air Lines | Ever Glory vs. Air Transport Services | Ever Glory vs. Aegean Airlines SA | Ever Glory vs. Herc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |