Correlation Between Eshallgo and MQGAU

Can any of the company-specific risk be diversified away by investing in both Eshallgo and MQGAU 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 MQGAU 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 MQGAU 5491 09 NOV 33, you can compare the effects of market volatilities on Eshallgo and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and MQGAU.

Diversification Opportunities for Eshallgo and MQGAU

0.54

Correlation Coefficient

Eshallgo  MQGAU

Very weak diversification

The 3 months correlation between Eshallgo and MQGAU is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and MQGAU 5491 09 NOV 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5491 09 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5491 09 has no effect on the direction of Eshallgo i.e., Eshallgo and MQGAU go up and down completely randomly.

Pair Corralation between Eshallgo and MQGAU

Given the investment horizon of 90 days Eshallgo Class A is expected to generate 9.68 times more return on investment than MQGAU. However, Eshallgo is 9.68 times more volatile than MQGAU 5491 09 NOV 33. It trades about -0.02 of its potential returns per unit of risk. MQGAU 5491 09 NOV 33 is currently generating about -0.84 per unit of risk. If you would invest  415.00  in Eshallgo Class A on October 9, 2024 and sell it today you would lose (52.00) from holding Eshallgo Class A or give up 12.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	31.58%
Values	Daily Returns

Eshallgo Class A  vs.  MQGAU 5491 09 NOV 33

Eshallgo Class A

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eshallgo Class A are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Eshallgo displayed solid returns over the last few months and may actually be approaching a breakup point.

MQGAU 5491 09

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MQGAU 5491 09 NOV 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for MQGAU 5491 09 NOV 33 investors.

Pair Trading with Eshallgo and MQGAU

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

The idea behind Eshallgo Class A and MQGAU 5491 09 NOV 33 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.