Correlation Between Amogreentech CoLtd and Ecopro BM

Can any of the company-specific risk be diversified away by investing in both Amogreentech CoLtd and Ecopro BM 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 Amogreentech CoLtd and Ecopro BM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amogreentech CoLtd and Ecopro BM Co, you can compare the effects of market volatilities on Amogreentech CoLtd and Ecopro BM 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 Amogreentech CoLtd with a short position of Ecopro BM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech CoLtd and Ecopro BM.

Diversification Opportunities for Amogreentech CoLtd and Ecopro BM

0.0

Correlation Coefficient

Amogreentech CoLtd  Ecopro BM

Pay attention - limited upside

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

Pair Corralation between Amogreentech CoLtd and Ecopro BM

If you would invest (100.00) in Ecopro BM Co on March 13, 2024 and sell it today you would earn a total of  100.00  from holding Ecopro BM Co or generate -100.0% return on investment over 90 days.

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

Amogreentech CoLtd  vs.  Ecopro BM Co

Amogreentech CoLtd

Risk-Adjusted Performance

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Modest

Over the last 90 days Amogreentech CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Amogreentech CoLtd is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ecopro BM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ecopro BM Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Amogreentech CoLtd and Ecopro BM

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

The idea behind Amogreentech CoLtd and Ecopro BM 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.