Correlation Between Ebang International and Defensive Market
Can any of the company-specific risk be diversified away by investing in both Ebang International and Defensive Market 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 Ebang International and Defensive Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebang International Holdings and Defensive Market Strategies, you can compare the effects of market volatilities on Ebang International and Defensive Market 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 Ebang International with a short position of Defensive Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebang International and Defensive Market.
Diversification Opportunities for Ebang International and Defensive Market
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ebang and Defensive is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ebang International Holdings and Defensive Market Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defensive Market Str and Ebang International 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 Ebang International Holdings are associated (or correlated) with Defensive Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defensive Market Str has no effect on the direction of Ebang International i.e., Ebang International and Defensive Market go up and down completely randomly.
Pair Corralation between Ebang International and Defensive Market
Given the investment horizon of 90 days Ebang International Holdings is expected to generate 20.69 times more return on investment than Defensive Market. However, Ebang International is 20.69 times more volatile than Defensive Market Strategies. It trades about 0.07 of its potential returns per unit of risk. Defensive Market Strategies is currently generating about 0.22 per unit of risk. If you would invest 331.00 in Ebang International Holdings on May 28, 2025 and sell it today you would earn a total of 46.00 from holding Ebang International Holdings or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ebang International Holdings vs. Defensive Market Strategies
Performance |
| Timeline |
| Ebang International |
| Defensive Market Str |
Ebang International and Defensive Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebang International and Defensive Market
The main advantage of trading using opposite Ebang International and Defensive Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebang International position performs unexpectedly, Defensive Market 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 Defensive Market will offset losses from the drop in Defensive Market's long position.| Ebang International vs. Canaan Inc | Ebang International vs. 3D Systems | Ebang International vs. NetApp Inc | Ebang International vs. Rigetti Computing |
| Defensive Market vs. Putnam Diversified Income | Defensive Market vs. Brown Advisory Small Cap | Defensive Market vs. Stone Ridge Diversified | Defensive Market vs. Fuller Thaler Behavioral |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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