Correlation Between EAT WELL and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both EAT WELL and MOVIE GAMES 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 EAT WELL and MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAT WELL INVESTMENT and MOVIE GAMES SA, you can compare the effects of market volatilities on EAT WELL and MOVIE GAMES 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 EAT WELL with a short position of MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAT WELL and MOVIE GAMES.
Diversification Opportunities for EAT WELL and MOVIE GAMES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAT and MOVIE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAT WELL INVESTMENT and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA and EAT WELL 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 EAT WELL INVESTMENT are associated (or correlated) with MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of EAT WELL i.e., EAT WELL and MOVIE GAMES go up and down completely randomly.
Pair Corralation between EAT WELL and MOVIE GAMES
Assuming the 90 days trading horizon EAT WELL INVESTMENT is expected to generate 0.85 times more return on investment than MOVIE GAMES. However, EAT WELL INVESTMENT is 1.18 times less risky than MOVIE GAMES. It trades about 0.01 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about 0.0 per unit of risk. If you would invest 13.00 in EAT WELL INVESTMENT on September 4, 2024 and sell it today you would lose (2.00) from holding EAT WELL INVESTMENT or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAT WELL INVESTMENT vs. MOVIE GAMES SA
Performance |
| Timeline |
| EAT WELL INVESTMENT |
| MOVIE GAMES SA |
EAT WELL and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAT WELL and MOVIE GAMES
The main advantage of trading using opposite EAT WELL and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAT WELL position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| EAT WELL vs. Blackstone Group | EAT WELL vs. BlackRock | EAT WELL vs. The Bank of | EAT WELL vs. Ameriprise Financial |
| MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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