Correlation Between Chegg and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both Chegg and AM EAGLE 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 Chegg and AM EAGLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chegg Inc and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on Chegg and AM EAGLE 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 Chegg with a short position of AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chegg and AM EAGLE.
Diversification Opportunities for Chegg and AM EAGLE
Very good diversification
The 3 months correlation between Chegg and AFG is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chegg Inc and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS and Chegg 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 Chegg Inc are associated (or correlated) with AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of Chegg i.e., Chegg and AM EAGLE go up and down completely randomly.
Pair Corralation between Chegg and AM EAGLE
Assuming the 90 days horizon Chegg Inc is expected to generate 1.96 times more return on investment than AM EAGLE. However, Chegg is 1.96 times more volatile than AM EAGLE OUTFITTERS. It trades about 0.25 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about 0.01 per unit of risk. If you would invest 173.00 in Chegg Inc on September 13, 2024 and sell it today you would earn a total of 77.00 from holding Chegg Inc or generate 44.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chegg Inc vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| Chegg Inc |
| AM EAGLE OUTFITTERS |
Chegg and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chegg and AM EAGLE
The main advantage of trading using opposite Chegg and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chegg position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| Chegg vs. Zijin Mining Group | Chegg vs. MCEWEN MINING INC | Chegg vs. Penta Ocean Construction Co | Chegg vs. Chongqing Machinery Electric |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |