Correlation Between Eshallgo and Boot Barn

Can any of the company-specific risk be diversified away by investing in both Eshallgo and Boot Barn 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 Boot Barn 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 Boot Barn Holdings, you can compare the effects of market volatilities on Eshallgo and Boot Barn 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 Boot Barn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Boot Barn.

Diversification Opportunities for Eshallgo and Boot Barn

-0.72

Correlation Coefficient

Eshallgo  Boot Barn

Pay attention - limited upside

The 3 months correlation between Eshallgo and Boot is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Boot Barn Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boot Barn Holdings 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 Boot Barn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boot Barn Holdings has no effect on the direction of Eshallgo i.e., Eshallgo and Boot Barn go up and down completely randomly.

Pair Corralation between Eshallgo and Boot Barn

Given the investment horizon of 90 days Eshallgo Class A is expected to under-perform the Boot Barn. In addition to that, Eshallgo is 1.73 times more volatile than Boot Barn Holdings. It trades about -0.17 of its total potential returns per unit of risk. Boot Barn Holdings is currently generating about 0.14 per unit of volatility. If you would invest  13,330  in Boot Barn Holdings on May 10, 2025 and sell it today you would earn a total of  3,534  from holding Boot Barn Holdings or generate 26.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Eshallgo Class A  vs.  Boot Barn Holdings

Eshallgo Class A

Risk-Adjusted Performance

Weakest

Over the last 90 days Eshallgo Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Boot Barn Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Boot Barn Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Boot Barn unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eshallgo and Boot Barn

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

The idea behind Eshallgo Class A and Boot Barn Holdings 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.