Correlation Between Eshallgo and ScanTech
Can any of the company-specific risk be diversified away by investing in both Eshallgo and ScanTech 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 Eshallgo and ScanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eshallgo Class A and ScanTech AI Systems, you can compare the effects of market volatilities on Eshallgo and ScanTech 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 Eshallgo with a short position of ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and ScanTech.
Diversification Opportunities for Eshallgo and ScanTech
Poor diversification
The 3 months correlation between Eshallgo and ScanTech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems and Eshallgo 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 Eshallgo Class A are associated (or correlated) with ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Eshallgo i.e., Eshallgo and ScanTech go up and down completely randomly.
Pair Corralation between Eshallgo and ScanTech
Given the investment horizon of 90 days Eshallgo Class A is expected to under-perform the ScanTech. But the stock apears to be less risky and, when comparing its historical volatility, Eshallgo Class A is 2.35 times less risky than ScanTech. The stock trades about -0.08 of its potential returns per unit of risk. The ScanTech AI Systems is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 71.00 in ScanTech AI Systems on June 3, 2025 and sell it today you would lose (29.00) from holding ScanTech AI Systems or give up 40.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. ScanTech AI Systems
Performance |
| Timeline |
| Eshallgo Class A |
| ScanTech AI Systems |
Eshallgo and ScanTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and ScanTech
The main advantage of trading using opposite Eshallgo and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.The idea behind Eshallgo Class A and ScanTech AI Systems 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 the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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