Correlation Between Ebro Foods and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Ebro Foods and Las Vegas 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 Ebro Foods and Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebro Foods and Las Vegas Sands, you can compare the effects of market volatilities on Ebro Foods and Las Vegas 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 Ebro Foods with a short position of Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and Las Vegas.
Diversification Opportunities for Ebro Foods and Las Vegas
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ebro and Las is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands and Ebro Foods 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 Ebro Foods are associated (or correlated) with Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of Ebro Foods i.e., Ebro Foods and Las Vegas go up and down completely randomly.
Pair Corralation between Ebro Foods and Las Vegas
Assuming the 90 days trading horizon Ebro Foods is expected to generate 0.44 times more return on investment than Las Vegas. However, Ebro Foods is 2.27 times less risky than Las Vegas. It trades about 0.04 of its potential returns per unit of risk. Las Vegas Sands is currently generating about 0.01 per unit of risk. If you would invest 1,402 in Ebro Foods on September 3, 2024 and sell it today you would earn a total of 201.00 from holding Ebro Foods or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
Ebro Foods vs. Las Vegas Sands
Performance |
| Timeline |
| Ebro Foods |
| Las Vegas Sands |
Ebro Foods and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebro Foods and Las Vegas
The main advantage of trading using opposite Ebro Foods and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.| Ebro Foods vs. Electronic Arts | Ebro Foods vs. Hochschild Mining plc | Ebro Foods vs. Metals Exploration Plc | Ebro Foods vs. Greenroc Mining PLC |
| Las Vegas vs. Bellevue Healthcare Trust | Las Vegas vs. Spire Healthcare Group | Las Vegas vs. Veolia Environnement VE | Las Vegas vs. Optima Health plc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |