Correlation Between EvoAir Holdings and Azure Holding

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

By analyzing existing cross correlation between EvoAir Holdings and Azure Holding Group, you can compare the effects of market volatilities on EvoAir Holdings and Azure Holding 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 EvoAir Holdings with a short position of Azure Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of EvoAir Holdings and Azure Holding.

Diversification Opportunities for EvoAir Holdings and Azure Holding

0.0

Correlation Coefficient

EvoAir Holdings  Azure Holding

Pay attention - limited upside

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

Pair Corralation between EvoAir Holdings and Azure Holding

If you would invest  9.92  in Azure Holding Group on September 17, 2024 and sell it today you would earn a total of  2.08  from holding Azure Holding Group or generate 20.97% return on investment over 90 days.

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

EvoAir Holdings  vs.  Azure Holding Group

EvoAir Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EvoAir Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, EvoAir Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Azure Holding Group

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Azure Holding Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Azure Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EvoAir Holdings and Azure Holding

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

The idea behind EvoAir Holdings and Azure Holding Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.