Correlation Between Evergreen Marine and Chicony Electronics
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Chicony Electronics 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 Chicony Electronics 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 Chicony Electronics Co, you can compare the effects of market volatilities on Evergreen Marine and Chicony Electronics 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 Chicony Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Chicony Electronics.
Diversification Opportunities for Evergreen Marine and Chicony Electronics
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evergreen and Chicony is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Chicony Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Electronics 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 Chicony Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Electronics has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Chicony Electronics go up and down completely randomly.
Pair Corralation between Evergreen Marine and Chicony Electronics
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 1.22 times more return on investment than Chicony Electronics. However, Evergreen Marine is 1.22 times more volatile than Chicony Electronics Co. It trades about 0.16 of its potential returns per unit of risk. Chicony Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 16,500 in Evergreen Marine Corp on March 1, 2024 and sell it today you would earn a total of 5,300 from holding Evergreen Marine Corp or generate 32.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Evergreen Marine Corp vs. Chicony Electronics Co
Performance |
Timeline |
Evergreen Marine Corp |
Chicony Electronics |
Evergreen Marine and Chicony Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Evergreen Marine and Chicony Electronics
The main advantage of trading using opposite Evergreen Marine and Chicony Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Chicony Electronics 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 Chicony Electronics will offset losses from the drop in Chicony Electronics' long position.Evergreen Marine vs. Universal Microelectronics Co | Evergreen Marine vs. Greatek Electronics | Evergreen Marine vs. AVerMedia Technologies |
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 Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
CEOs Directory Screen CEOs from public companies around the world | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |