Correlation Between G Shank and Evergreen Marine
Can any of the company-specific risk be diversified away by investing in both G Shank and Evergreen Marine 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 G Shank and Evergreen Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Shank Enterprise Co and Evergreen Marine Corp, you can compare the effects of market volatilities on G Shank and Evergreen Marine 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 G Shank with a short position of Evergreen Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Shank and Evergreen Marine.
Diversification Opportunities for G Shank and Evergreen Marine
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 2476 and Evergreen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding G Shank Enterprise Co and Evergreen Marine Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evergreen Marine Corp and G Shank 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 G Shank Enterprise Co are associated (or correlated) with Evergreen Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evergreen Marine Corp has no effect on the direction of G Shank i.e., G Shank and Evergreen Marine go up and down completely randomly.
Pair Corralation between G Shank and Evergreen Marine
Assuming the 90 days trading horizon G Shank is expected to generate 1.37 times less return on investment than Evergreen Marine. But when comparing it to its historical volatility, G Shank Enterprise Co is 1.08 times less risky than Evergreen Marine. It trades about 0.08 of its potential returns per unit of risk. Evergreen Marine Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 11,350 in Evergreen Marine Corp on September 26, 2024 and sell it today you would earn a total of 11,850 from holding Evergreen Marine Corp or generate 104.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.67% |
Values | Daily Returns |
G Shank Enterprise Co vs. Evergreen Marine Corp
Performance |
Timeline |
G Shank Enterprise |
Evergreen Marine Corp |
G Shank and Evergreen Marine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Shank and Evergreen Marine
The main advantage of trading using opposite G Shank and Evergreen Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Shank position performs unexpectedly, Evergreen Marine 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 Evergreen Marine will offset losses from the drop in Evergreen Marine's long position.G Shank vs. Yang Ming Marine | G Shank vs. Evergreen Marine Corp | G Shank vs. Eva Airways Corp | G Shank vs. U Ming Marine Transport |
Evergreen Marine vs. Yang Ming Marine | Evergreen Marine vs. Eva Airways Corp | Evergreen Marine vs. U Ming Marine Transport |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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