Correlation Between Vulcan Materials and Eshallgo

Can any of the company-specific risk be diversified away by investing in both Vulcan Materials and Eshallgo 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 Vulcan Materials and Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vulcan Materials and Eshallgo Class A, you can compare the effects of market volatilities on Vulcan Materials and Eshallgo 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 Vulcan Materials with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Materials and Eshallgo.

Diversification Opportunities for Vulcan Materials and Eshallgo

-0.32

Correlation Coefficient

Vulcan Materials  Eshallgo

Very good diversification

The 3 months correlation between Vulcan and Eshallgo is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Materials and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and Vulcan Materials 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 Vulcan Materials are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Vulcan Materials i.e., Vulcan Materials and Eshallgo go up and down completely randomly.

Pair Corralation between Vulcan Materials and Eshallgo

Considering the 90-day investment horizon Vulcan Materials is expected to generate 0.23 times more return on investment than Eshallgo. However, Vulcan Materials is 4.28 times less risky than Eshallgo. It trades about 0.11 of its potential returns per unit of risk. Eshallgo Class A is currently generating about -0.13 per unit of risk. If you would invest  27,074  in Vulcan Materials on May 22, 2025 and sell it today you would earn a total of  2,210  from holding Vulcan Materials or generate 8.16% return on investment over 90 days.

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

Vulcan Materials  vs.  Eshallgo Class A

Vulcan Materials

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Materials are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating primary indicators, Vulcan Materials may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 weak 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.

Pair Trading with Vulcan Materials and Eshallgo

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

The idea behind Vulcan Materials and Eshallgo Class A 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.