Correlation Between Eshallgo and CMUV Bancorp

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

By analyzing existing cross correlation between Eshallgo Class A and CMUV Bancorp, you can compare the effects of market volatilities on Eshallgo and CMUV Bancorp 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 Eshallgo with a short position of CMUV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and CMUV Bancorp.

Diversification Opportunities for Eshallgo and CMUV Bancorp

-0.12

Correlation Coefficient

Eshallgo  CMUV Bancorp

Good diversification

The 3 months correlation between Eshallgo and CMUV is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and CMUV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMUV Bancorp and Eshallgo 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 Eshallgo Class A are associated (or correlated) with CMUV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMUV Bancorp has no effect on the direction of Eshallgo i.e., Eshallgo and CMUV Bancorp go up and down completely randomly.

Pair Corralation between Eshallgo and CMUV Bancorp

Given the investment horizon of 90 days Eshallgo Class A is expected to under-perform the CMUV Bancorp. In addition to that, Eshallgo is 9.56 times more volatile than CMUV Bancorp. It trades about -0.27 of its total potential returns per unit of risk. CMUV Bancorp is currently generating about 0.32 per unit of volatility. If you would invest  2,050  in CMUV Bancorp on October 27, 2024 and sell it today you would earn a total of  200.00  from holding CMUV Bancorp or generate 9.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eshallgo Class A  vs.  CMUV Bancorp

Eshallgo Class A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eshallgo Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

CMUV Bancorp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CMUV Bancorp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, CMUV Bancorp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eshallgo and CMUV Bancorp

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

The idea behind Eshallgo Class A and CMUV Bancorp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.