Correlation Between EMBARK EDUCATION and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both EMBARK EDUCATION and SQUIRREL MEDIA 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 EMBARK EDUCATION and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMBARK EDUCATION LTD and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on EMBARK EDUCATION and SQUIRREL MEDIA 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 EMBARK EDUCATION with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMBARK EDUCATION and SQUIRREL MEDIA.
Diversification Opportunities for EMBARK EDUCATION and SQUIRREL MEDIA
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between EMBARK and SQUIRREL is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding EMBARK EDUCATION LTD and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA and EMBARK EDUCATION 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 EMBARK EDUCATION LTD are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of EMBARK EDUCATION i.e., EMBARK EDUCATION and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between EMBARK EDUCATION and SQUIRREL MEDIA
If you would invest 118.00 in SQUIRREL MEDIA SA on October 28, 2024 and sell it today you would earn a total of 16.00 from holding SQUIRREL MEDIA SA or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
EMBARK EDUCATION LTD vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| EMBARK EDUCATION LTD |
| SQUIRREL MEDIA SA |
EMBARK EDUCATION and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMBARK EDUCATION and SQUIRREL MEDIA
The main advantage of trading using opposite EMBARK EDUCATION and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMBARK EDUCATION position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| EMBARK EDUCATION vs. REINET INVESTMENTS SCA | EMBARK EDUCATION vs. Fast Retailing Co | EMBARK EDUCATION vs. Ross Stores | EMBARK EDUCATION vs. Guangdong Investment Limited |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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