Correlation Between EHEALTH and Ming Le
Can any of the company-specific risk be diversified away by investing in both EHEALTH and Ming Le 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 EHEALTH and Ming Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHEALTH and Ming Le Sports, you can compare the effects of market volatilities on EHEALTH and Ming Le 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 EHEALTH with a short position of Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHEALTH and Ming Le.
Diversification Opportunities for EHEALTH and Ming Le
Poor diversification
The 3 months correlation between EHEALTH and Ming is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding EHEALTH and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports and EHEALTH 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 EHEALTH are associated (or correlated) with Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of EHEALTH i.e., EHEALTH and Ming Le go up and down completely randomly.
Pair Corralation between EHEALTH and Ming Le
Assuming the 90 days trading horizon EHEALTH is expected to generate 2.29 times more return on investment than Ming Le. However, EHEALTH is 2.29 times more volatile than Ming Le Sports. It trades about 0.03 of its potential returns per unit of risk. Ming Le Sports is currently generating about 0.01 per unit of risk. If you would invest 479.00 in EHEALTH on September 12, 2024 and sell it today you would earn a total of 40.00 from holding EHEALTH or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EHEALTH vs. Ming Le Sports
Performance |
| Timeline |
| EHEALTH |
| Ming Le Sports |
EHEALTH and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHEALTH and Ming Le
The main advantage of trading using opposite EHEALTH and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHEALTH position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le's long position.| EHEALTH vs. PREMIER FOODS | EHEALTH vs. Commonwealth Bank of | EHEALTH vs. ASSOC BR FOODS | EHEALTH vs. Thai Beverage Public |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |