Correlation Between OURGAME INTHOLDL and American Eagle
Can any of the company-specific risk be diversified away by investing in both OURGAME INTHOLDL and American 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 OURGAME INTHOLDL and American Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and American Eagle Outfitters, you can compare the effects of market volatilities on OURGAME INTHOLDL and American 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 OURGAME INTHOLDL with a short position of American Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL and American Eagle.
Diversification Opportunities for OURGAME INTHOLDL and American Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OURGAME and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 and American Eagle Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Eagle Outfitters and OURGAME INTHOLDL 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 OURGAME INTHOLDL 00005 are associated (or correlated) with American Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Eagle Outfitters has no effect on the direction of OURGAME INTHOLDL i.e., OURGAME INTHOLDL and American Eagle go up and down completely randomly.
Pair Corralation between OURGAME INTHOLDL and American Eagle
Assuming the 90 days horizon OURGAME INTHOLDL 00005 is expected to generate 3.48 times more return on investment than American Eagle. However, OURGAME INTHOLDL is 3.48 times more volatile than American Eagle Outfitters. It trades about 0.03 of its potential returns per unit of risk. American Eagle Outfitters is currently generating about 0.04 per unit of risk. If you would invest 3.55 in OURGAME INTHOLDL 00005 on September 5, 2024 and sell it today you would lose (1.95) from holding OURGAME INTHOLDL 00005 or give up 54.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
OURGAME INTHOLDL 00005 vs. American Eagle Outfitters
Performance |
| Timeline |
| OURGAME INTHOLDL 00005 |
| American Eagle Outfitters |
OURGAME INTHOLDL and American Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OURGAME INTHOLDL and American Eagle
The main advantage of trading using opposite OURGAME INTHOLDL and American Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL position performs unexpectedly, American 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 American Eagle will offset losses from the drop in American Eagle's long position.| OURGAME INTHOLDL vs. Nintendo Co | OURGAME INTHOLDL vs. Nintendo Co | OURGAME INTHOLDL vs. Sea Limited | OURGAME INTHOLDL vs. Take Two Interactive Software |
| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |