Correlation Between INVITATION HOMES and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both INVITATION HOMES 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 INVITATION HOMES and AM EAGLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INVITATION HOMES DL and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on INVITATION HOMES 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 INVITATION HOMES with a short position of AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INVITATION HOMES and AM EAGLE.
Diversification Opportunities for INVITATION HOMES and AM EAGLE
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INVITATION and AFG is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding INVITATION HOMES DL 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 INVITATION HOMES 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 INVITATION HOMES DL 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 INVITATION HOMES i.e., INVITATION HOMES and AM EAGLE go up and down completely randomly.
Pair Corralation between INVITATION HOMES and AM EAGLE
Assuming the 90 days horizon INVITATION HOMES DL is expected to generate 0.75 times more return on investment than AM EAGLE. However, INVITATION HOMES DL is 1.33 times less risky than AM EAGLE. It trades about 0.13 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about -0.1 per unit of risk. If you would invest 3,040 in INVITATION HOMES DL on August 30, 2024 and sell it today you would earn a total of 160.00 from holding INVITATION HOMES DL or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
INVITATION HOMES DL vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| INVITATION HOMES |
| AM EAGLE OUTFITTERS |
INVITATION HOMES and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INVITATION HOMES and AM EAGLE
The main advantage of trading using opposite INVITATION HOMES and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INVITATION HOMES 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.| INVITATION HOMES vs. UDR Inc | INVITATION HOMES vs. Superior Plus Corp | INVITATION HOMES vs. NMI Holdings | INVITATION HOMES vs. SIVERS SEMICONDUCTORS AB |
| AM EAGLE vs. INVITATION HOMES DL | AM EAGLE vs. Chiba Bank | AM EAGLE vs. REVO INSURANCE SPA | AM EAGLE vs. CHIBA BANK |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |