Correlation Between Ecgi Holdings and Abbott Laboratories

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Can any of the company-specific risk be diversified away by investing in both Ecgi Holdings and Abbott Laboratories 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 Ecgi Holdings and Abbott Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecgi Holdings and Abbott Laboratories, you can compare the effects of market volatilities on Ecgi Holdings and Abbott Laboratories 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 Ecgi Holdings with a short position of Abbott Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecgi Holdings and Abbott Laboratories.

Diversification Opportunities for Ecgi Holdings and Abbott Laboratories

-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between Ecgi Holdings and Abbott is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ecgi Holdings and Abbott Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbott Laboratories and Ecgi Holdings 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 Ecgi Holdings are associated (or correlated) with Abbott Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbott Laboratories has no effect on the direction of Ecgi Holdings i.e., Ecgi Holdings and Abbott Laboratories go up and down completely randomly.

Pair Corralation between Ecgi Holdings and Abbott Laboratories

Given the investment horizon of 90 days Ecgi Holdings is expected to generate 21.1 times more return on investment than Abbott Laboratories. However, Ecgi Holdings is 21.1 times more volatile than Abbott Laboratories. It trades about 0.11 of its potential returns per unit of risk. Abbott Laboratories is currently generating about 0.03 per unit of risk. If you would invest  24.00  in Ecgi Holdings on March 28, 2022 and sell it today you would lose (5.00)  from holding Ecgi Holdings or give up 20.83% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ecgi Holdings  vs.  Abbott Laboratories

 Performance (%) 
      Timeline 
Ecgi Holdings 
Ecgi Holdings Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Ecgi Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly sluggish technical and fundamental indicators, Ecgi Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Last Split Factor
1:20
Dividend Date
2019-08-15
Last Split Date
2019-08-15

Ecgi Holdings Price Channel

Abbott Laboratories 
Abbott Performance
0 of 100
Over the last 90 days Abbott Laboratories has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0183
Payout Ratio
0.33
Last Split Factor
10000:4798
Forward Annual Dividend Rate
1.88
Dividend Date
2022-08-15
Ex Dividend Date
2022-07-14
Last Split Date
2013-01-02

Abbott Price Channel

Ecgi Holdings and Abbott Laboratories Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Ecgi Holdings and Abbott Laboratories

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

Ecgi Holdings

Pair trading matchups for Ecgi Holdings

The idea behind Ecgi Holdings and Abbott Laboratories 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.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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