Correlation Between Eshallgo and 26441CBU8

Can any of the company-specific risk be diversified away by investing in both Eshallgo and 26441CBU8 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 26441CBU8 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 DUK 5 15 AUG 52, you can compare the effects of market volatilities on Eshallgo and 26441CBU8 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 26441CBU8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and 26441CBU8.

Diversification Opportunities for Eshallgo and 26441CBU8

-0.29

Correlation Coefficient

Eshallgo  26441CBU8

Very good diversification

The 3 months correlation between Eshallgo and 26441CBU8 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and DUK 5 15 AUG 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 26441CBU8 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 26441CBU8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 26441CBU8 has no effect on the direction of Eshallgo i.e., Eshallgo and 26441CBU8 go up and down completely randomly.

Pair Corralation between Eshallgo and 26441CBU8

Given the investment horizon of 90 days Eshallgo Class A is expected to under-perform the 26441CBU8. In addition to that, Eshallgo is 6.37 times more volatile than DUK 5 15 AUG 52. It trades about -0.17 of its total potential returns per unit of risk. DUK 5 15 AUG 52 is currently generating about 0.02 per unit of volatility. If you would invest  8,802  in DUK 5 15 AUG 52 on December 25, 2024 and sell it today you would earn a total of  72.00  from holding DUK 5 15 AUG 52 or generate 0.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Eshallgo Class A  vs.  DUK 5 15 AUG 52

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 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 April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

26441CBU8

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DUK 5 15 AUG 52 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26441CBU8 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eshallgo and 26441CBU8

The main advantage of trading using opposite Eshallgo and 26441CBU8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, 26441CBU8 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 26441CBU8 will offset losses from the drop in 26441CBU8's long position.

The idea behind Eshallgo Class A and DUK 5 15 AUG 52 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.