Correlation Between Dohome Public and E For
Can any of the company-specific risk be diversified away by investing in both Dohome Public and E For 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 Dohome Public and E For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dohome Public and E for L, you can compare the effects of market volatilities on Dohome Public and E For 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 Dohome Public with a short position of E For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dohome Public and E For.
Diversification Opportunities for Dohome Public and E For
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dohome and EFORL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dohome Public and E for L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E for L and Dohome Public 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 Dohome Public are associated (or correlated) with E For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E for L has no effect on the direction of Dohome Public i.e., Dohome Public and E For go up and down completely randomly.
Pair Corralation between Dohome Public and E For
Assuming the 90 days trading horizon Dohome Public is expected to generate 0.49 times more return on investment than E For. However, Dohome Public is 2.05 times less risky than E For. It trades about 0.06 of its potential returns per unit of risk. E for L is currently generating about -0.05 per unit of risk. If you would invest 1,110 in Dohome Public on March 5, 2024 and sell it today you would earn a total of 60.00 from holding Dohome Public or generate 5.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dohome Public vs. E for L
Performance |
Timeline |
Dohome Public |
E for L |
Dohome Public and E For Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dohome Public and E For
The main advantage of trading using opposite Dohome Public and E For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dohome Public position performs unexpectedly, E For 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 E For will offset losses from the drop in E For's long position.Dohome Public vs. CK Power Public | Dohome Public vs. Thai Metal Drum | Dohome Public vs. Country Group Holdings | Dohome Public vs. SPCG Public |
E For vs. Winner Group Enterprise | E For vs. Vintcom Technology PCL | E For vs. Techno Medical Public | E For vs. Silicon Craft Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |