Correlation Between Etao International and Nano Mobile

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

By analyzing existing cross correlation between Etao International Co, and Nano Mobile Healthcare, you can compare the effects of market volatilities on Etao International and Nano Mobile 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 Etao International with a short position of Nano Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Etao International and Nano Mobile.

Diversification Opportunities for Etao International and Nano Mobile

0.0

Correlation Coefficient

Etao International  Nano Mobile

Pay attention - limited upside

The 3 months correlation between Etao and Nano is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Etao International Co, and Nano Mobile Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Mobile Healthcare and Etao International 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 Etao International Co, are associated (or correlated) with Nano Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Mobile Healthcare has no effect on the direction of Etao International i.e., Etao International and Nano Mobile go up and down completely randomly.

Pair Corralation between Etao International and Nano Mobile

If you would invest  0.02  in Nano Mobile Healthcare on December 17, 2024 and sell it today you would earn a total of  0.00  from holding Nano Mobile Healthcare or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Etao International Co,  vs.  Nano Mobile Healthcare

Etao International Co,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Etao International Co, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Etao International is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Nano Mobile Healthcare

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nano Mobile Healthcare are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Nano Mobile demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Etao International and Nano Mobile

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

The idea behind Etao International Co, and Nano Mobile Healthcare 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.