Correlation Between Evergreen Marine and Chang Type
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Chang Type 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 Evergreen Marine and Chang Type into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergreen Marine Corp and Chang Type Industrial, you can compare the effects of market volatilities on Evergreen Marine and Chang Type 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 Evergreen Marine with a short position of Chang Type. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Chang Type.
Diversification Opportunities for Evergreen Marine and Chang Type
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evergreen and Chang is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Chang Type Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chang Type Industrial and Evergreen Marine 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 Evergreen Marine Corp are associated (or correlated) with Chang Type. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chang Type Industrial has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Chang Type go up and down completely randomly.
Pair Corralation between Evergreen Marine and Chang Type
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 1.93 times more return on investment than Chang Type. However, Evergreen Marine is 1.93 times more volatile than Chang Type Industrial. It trades about 0.12 of its potential returns per unit of risk. Chang Type Industrial is currently generating about -0.33 per unit of risk. If you would invest 19,500 in Evergreen Marine Corp on September 23, 2024 and sell it today you would earn a total of 3,550 from holding Evergreen Marine Corp or generate 18.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Evergreen Marine Corp vs. Chang Type Industrial
Performance |
Timeline |
Evergreen Marine Corp |
Chang Type Industrial |
Evergreen Marine and Chang Type Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Evergreen Marine and Chang Type
The main advantage of trading using opposite Evergreen Marine and Chang Type positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Chang Type 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 Chang Type will offset losses from the drop in Chang Type's long position.Evergreen Marine vs. Yang Ming Marine | Evergreen Marine vs. Wan Hai Lines | Evergreen Marine vs. Eva Airways Corp | Evergreen Marine vs. China Airlines |
Chang Type vs. Merida Industry Co | Chang Type vs. Cheng Shin Rubber | Chang Type vs. Uni President Enterprises Corp | Chang Type vs. Pou Chen Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |