Correlation Between Stock Exchange and Eureka Design
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Eureka Design 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 Stock Exchange and Eureka Design into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Eureka Design Public, you can compare the effects of market volatilities on Stock Exchange and Eureka Design 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 Stock Exchange with a short position of Eureka Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Eureka Design.
Diversification Opportunities for Stock Exchange and Eureka Design
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stock and Eureka is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Eureka Design Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eureka Design Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Eureka Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eureka Design Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Eureka Design go up and down completely randomly.
Pair Corralation between Stock Exchange and Eureka Design
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.19 times more return on investment than Eureka Design. However, Stock Exchange Of is 5.35 times less risky than Eureka Design. It trades about -0.04 of its potential returns per unit of risk. Eureka Design Public is currently generating about -0.04 per unit of risk. If you would invest 158,452 in Stock Exchange Of on February 1, 2024 and sell it today you would lose (21,657) from holding Stock Exchange Of or give up 13.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Stock Exchange Of vs. Eureka Design Public
Performance |
Timeline |
Stock Exchange and Eureka Design Volatility Contrast
Predicted Return Density |
Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Eureka Design Public
Pair trading matchups for Eureka Design
Pair Trading with Stock Exchange and Eureka Design
The main advantage of trading using opposite Stock Exchange and Eureka Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Eureka Design 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 Eureka Design will offset losses from the drop in Eureka Design's long position.Stock Exchange vs. Turnkey Communication Services | Stock Exchange vs. Digital Telecommunications Infrastructure | Stock Exchange vs. Fine Metal Technologies | Stock Exchange vs. Vintcom Technology PCL |
Eureka Design vs. Srisawad Power 1979 | Eureka Design vs. Bangkok Life Assurance | Eureka Design vs. JMT Network Services | Eureka Design vs. Muangthai Capital Public |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |