Correlation Between ESUN Financial and Tsh Biopharmoration

Can any of the company-specific risk be diversified away by investing in both ESUN Financial and Tsh Biopharmoration 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 ESUN Financial and Tsh Biopharmoration into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ESUN Financial Holding and tsh biopharmoration, you can compare the effects of market volatilities on ESUN Financial and Tsh Biopharmoration 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 ESUN Financial with a short position of Tsh Biopharmoration. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESUN Financial and Tsh Biopharmoration.

Diversification Opportunities for ESUN Financial and Tsh Biopharmoration

0.49

Correlation Coefficient

ESUN Financial  Tsh Biopharmoration

Very weak diversification

The 3 months correlation between ESUN and Tsh is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ESUN Financial Holding and tsh biopharmoration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on tsh biopharmoration and ESUN Financial 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 ESUN Financial Holding are associated (or correlated) with Tsh Biopharmoration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of tsh biopharmoration has no effect on the direction of ESUN Financial i.e., ESUN Financial and Tsh Biopharmoration go up and down completely randomly.

Pair Corralation between ESUN Financial and Tsh Biopharmoration

Assuming the 90 days trading horizon ESUN Financial Holding is expected to under-perform the Tsh Biopharmoration. But the stock apears to be less risky and, when comparing its historical volatility, ESUN Financial Holding is 1.89 times less risky than Tsh Biopharmoration. The stock trades about -0.02 of its potential returns per unit of risk. The tsh biopharmoration is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  6,340  in tsh biopharmoration on October 13, 2024 and sell it today you would lose (220.00) from holding tsh biopharmoration or give up 3.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.32%
Values	Daily Returns

ESUN Financial Holding  vs.  tsh biopharmoration

ESUN Financial Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ESUN Financial Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, ESUN Financial is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

tsh biopharmoration

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days tsh biopharmoration has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with ESUN Financial and Tsh Biopharmoration

The main advantage of trading using opposite ESUN Financial and Tsh Biopharmoration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESUN Financial position performs unexpectedly, Tsh Biopharmoration 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 Tsh Biopharmoration will offset losses from the drop in Tsh Biopharmoration's long position.

The idea behind ESUN Financial Holding and tsh biopharmoration pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.