Correlation Between ECHO INVESTMENT and Graham Holdings

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

By analyzing existing cross correlation between ECHO INVESTMENT ZY and Graham Holdings Co, you can compare the effects of market volatilities on ECHO INVESTMENT and Graham Holdings 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 ECHO INVESTMENT with a short position of Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECHO INVESTMENT and Graham Holdings.

Diversification Opportunities for ECHO INVESTMENT and Graham Holdings

-0.37

Correlation Coefficient

ECHO INVESTMENT  Graham Holdings

Very good diversification

The 3 months correlation between ECHO and Graham is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ECHO INVESTMENT ZY and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings and ECHO INVESTMENT 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 ECHO INVESTMENT ZY are associated (or correlated) with Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of ECHO INVESTMENT i.e., ECHO INVESTMENT and Graham Holdings go up and down completely randomly.

Pair Corralation between ECHO INVESTMENT and Graham Holdings

Assuming the 90 days horizon ECHO INVESTMENT ZY is expected to generate 1.05 times more return on investment than Graham Holdings. However, ECHO INVESTMENT is 1.05 times more volatile than Graham Holdings Co. It trades about 0.12 of its potential returns per unit of risk. Graham Holdings Co is currently generating about 0.04 per unit of risk. If you would invest  106.00  in ECHO INVESTMENT ZY on April 20, 2025 and sell it today you would earn a total of  13.00  from holding ECHO INVESTMENT ZY or generate 12.26% return on investment over 90 days.

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

ECHO INVESTMENT ZY  vs.  Graham Holdings Co

ECHO INVESTMENT ZY

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ECHO INVESTMENT ZY are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ECHO INVESTMENT may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Graham Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Graham Holdings Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Graham Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ECHO INVESTMENT and Graham Holdings

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

The idea behind ECHO INVESTMENT ZY and Graham Holdings Co 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.