Correlation Between CSBC Corp and Eva Airways
Can any of the company-specific risk be diversified away by investing in both CSBC Corp and Eva Airways 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 CSBC Corp and Eva Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSBC Corp Taiwan and Eva Airways Corp, you can compare the effects of market volatilities on CSBC Corp and Eva Airways 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 CSBC Corp with a short position of Eva Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSBC Corp and Eva Airways.
Diversification Opportunities for CSBC Corp and Eva Airways
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CSBC and Eva is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CSBC Corp Taiwan and Eva Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eva Airways Corp and CSBC Corp 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 CSBC Corp Taiwan are associated (or correlated) with Eva Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eva Airways Corp has no effect on the direction of CSBC Corp i.e., CSBC Corp and Eva Airways go up and down completely randomly.
Pair Corralation between CSBC Corp and Eva Airways
Assuming the 90 days trading horizon CSBC Corp Taiwan is expected to generate 1.01 times more return on investment than Eva Airways. However, CSBC Corp is 1.01 times more volatile than Eva Airways Corp. It trades about 0.16 of its potential returns per unit of risk. Eva Airways Corp is currently generating about -0.04 per unit of risk. If you would invest 1,530 in CSBC Corp Taiwan on December 28, 2024 and sell it today you would earn a total of 220.00 from holding CSBC Corp Taiwan or generate 14.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CSBC Corp Taiwan vs. Eva Airways Corp
Performance |
Timeline |
CSBC Corp Taiwan |
Eva Airways Corp |
CSBC Corp and Eva Airways Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSBC Corp and Eva Airways
The main advantage of trading using opposite CSBC Corp and Eva Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSBC Corp position performs unexpectedly, Eva Airways 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 Eva Airways will offset losses from the drop in Eva Airways' long position.CSBC Corp vs. Sincere Navigation Corp | CSBC Corp vs. Evergreen International Storage | CSBC Corp vs. First Steamship Co | CSBC Corp vs. Mercuries Life Insurance |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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