Correlation Between Eshallgo and TTM Technologies

Can any of the company-specific risk be diversified away by investing in both Eshallgo and TTM Technologies 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 TTM Technologies 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 TTM Technologies, you can compare the effects of market volatilities on Eshallgo and TTM Technologies 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 TTM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and TTM Technologies.

Diversification Opportunities for Eshallgo and TTM Technologies

0.2

Correlation Coefficient

Eshallgo  TTM Technologies

Modest diversification

The 3 months correlation between Eshallgo and TTM is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and TTM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTM Technologies 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 TTM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTM Technologies has no effect on the direction of Eshallgo i.e., Eshallgo and TTM Technologies go up and down completely randomly.

Pair Corralation between Eshallgo and TTM Technologies

Given the investment horizon of 90 days Eshallgo Class A is expected to generate 31.01 times more return on investment than TTM Technologies. However, Eshallgo is 31.01 times more volatile than TTM Technologies. It trades about 0.07 of its potential returns per unit of risk. TTM Technologies is currently generating about 0.06 per unit of risk. If you would invest  0.00  in Eshallgo Class A on December 28, 2024 and sell it today you would earn a total of  101.00  from holding Eshallgo Class A or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	37.85%
Values	Daily Returns

Eshallgo Class A  vs.  TTM Technologies

Eshallgo Class A

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

TTM Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days TTM Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's primary indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Eshallgo and TTM Technologies

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

The idea behind Eshallgo Class A and TTM Technologies 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.