Correlation Between Eva Airways and G Shank
Can any of the company-specific risk be diversified away by investing in both Eva Airways and G Shank 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 Eva Airways and G Shank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eva Airways Corp and G Shank Enterprise Co, you can compare the effects of market volatilities on Eva Airways and G Shank 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 Eva Airways with a short position of G Shank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eva Airways and G Shank.
Diversification Opportunities for Eva Airways and G Shank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eva and 2476 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eva Airways Corp and G Shank Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Shank Enterprise and Eva Airways 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 Eva Airways Corp are associated (or correlated) with G Shank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Shank Enterprise has no effect on the direction of Eva Airways i.e., Eva Airways and G Shank go up and down completely randomly.
Pair Corralation between Eva Airways and G Shank
Assuming the 90 days trading horizon Eva Airways is expected to generate 1.19 times less return on investment than G Shank. But when comparing it to its historical volatility, Eva Airways Corp is 1.27 times less risky than G Shank. It trades about 0.09 of its potential returns per unit of risk. G Shank Enterprise Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,070 in G Shank Enterprise Co on September 26, 2024 and sell it today you would earn a total of 3,380 from holding G Shank Enterprise Co or generate 66.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eva Airways Corp vs. G Shank Enterprise Co
Performance |
Timeline |
Eva Airways Corp |
G Shank Enterprise |
Eva Airways and G Shank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eva Airways and G Shank
The main advantage of trading using opposite Eva Airways and G Shank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eva Airways position performs unexpectedly, G Shank 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 G Shank will offset losses from the drop in G Shank's long position.Eva Airways vs. Yang Ming Marine | Eva Airways vs. Evergreen Marine Corp | Eva Airways vs. U Ming Marine Transport |
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 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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