Correlation Between LANDSEA GREEN and American Eagle
Can any of the company-specific risk be diversified away by investing in both LANDSEA GREEN 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 LANDSEA GREEN and American Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LANDSEA GREEN MANAGEMENT and American Eagle Outfitters, you can compare the effects of market volatilities on LANDSEA GREEN 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 LANDSEA GREEN with a short position of American Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA GREEN and American Eagle.
Diversification Opportunities for LANDSEA GREEN and American Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LANDSEA and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN 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 LANDSEA GREEN MANAGEMENT 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 LANDSEA GREEN i.e., LANDSEA GREEN and American Eagle go up and down completely randomly.
Pair Corralation between LANDSEA GREEN and American Eagle
Assuming the 90 days horizon LANDSEA GREEN MANAGEMENT is expected to generate 38.58 times more return on investment than American Eagle. However, LANDSEA GREEN is 38.58 times more volatile than American Eagle Outfitters. It trades about 0.1 of its potential returns per unit of risk. American Eagle Outfitters is currently generating about 0.0 per unit of risk. If you would invest 1.00 in LANDSEA GREEN MANAGEMENT on October 29, 2024 and sell it today you would lose (0.90) from holding LANDSEA GREEN MANAGEMENT or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LANDSEA GREEN MANAGEMENT vs. American Eagle Outfitters
Performance |
| Timeline |
| LANDSEA GREEN MANAGEMENT |
| American Eagle Outfitters |
LANDSEA GREEN and American Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LANDSEA GREEN and American Eagle
The main advantage of trading using opposite LANDSEA GREEN and American Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA GREEN 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.| LANDSEA GREEN vs. DALATA HOTEL | LANDSEA GREEN vs. HYATT HOTELS A | LANDSEA GREEN vs. CONTAGIOUS GAMING INC | LANDSEA GREEN vs. MHP Hotel AG |
| American Eagle vs. Maple Leaf Foods | American Eagle vs. TRADEGATE | American Eagle vs. The Trade Desk | American Eagle vs. Cal Maine Foods |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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