Correlation Between DETALION GAMES and American Eagle
Can any of the company-specific risk be diversified away by investing in both DETALION GAMES 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 DETALION GAMES and American Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DETALION GAMES SA and American Eagle Outfitters, you can compare the effects of market volatilities on DETALION GAMES 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 DETALION GAMES with a short position of American Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of DETALION GAMES and American Eagle.
Diversification Opportunities for DETALION GAMES and American Eagle
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DETALION and American is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding DETALION GAMES SA 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 DETALION GAMES 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 DETALION GAMES SA 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 DETALION GAMES i.e., DETALION GAMES and American Eagle go up and down completely randomly.
Pair Corralation between DETALION GAMES and American Eagle
Assuming the 90 days horizon DETALION GAMES SA is expected to generate 1.2 times more return on investment than American Eagle. However, DETALION GAMES is 1.2 times more volatile than American Eagle Outfitters. It trades about 0.11 of its potential returns per unit of risk. American Eagle Outfitters is currently generating about 0.01 per unit of risk. If you would invest 19.00 in DETALION GAMES SA on October 26, 2024 and sell it today you would earn a total of 3.00 from holding DETALION GAMES SA or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DETALION GAMES SA vs. American Eagle Outfitters
Performance |
| Timeline |
| DETALION GAMES SA |
| American Eagle Outfitters |
DETALION GAMES and American Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DETALION GAMES and American Eagle
The main advantage of trading using opposite DETALION GAMES and American Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DETALION GAMES 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.| DETALION GAMES vs. Clean Energy Fuels | DETALION GAMES vs. Costco Wholesale Corp | DETALION GAMES vs. FIREWEED METALS P | DETALION GAMES vs. ULTRA CLEAN HLDGS |
| American Eagle vs. Phibro Animal Health | American Eagle vs. CHINA EDUCATION GROUP | American Eagle vs. PURETECH HEALTH PLC | American Eagle vs. Perdoceo Education |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |