Correlation Between Affinity Beverage and Ehouse Global
Can any of the company-specific risk be diversified away by investing in both Affinity Beverage and Ehouse Global 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 Affinity Beverage and Ehouse Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affinity Beverage Group and Ehouse Global, you can compare the effects of market volatilities on Affinity Beverage and Ehouse Global 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 Affinity Beverage with a short position of Ehouse Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity Beverage and Ehouse Global.
Diversification Opportunities for Affinity Beverage and Ehouse Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Affinity and Ehouse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Affinity Beverage Group and Ehouse Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehouse Global and Affinity Beverage 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 Affinity Beverage Group are associated (or correlated) with Ehouse Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ehouse Global has no effect on the direction of Affinity Beverage i.e., Affinity Beverage and Ehouse Global go up and down completely randomly.
Pair Corralation between Affinity Beverage and Ehouse Global
If you would invest 0.00 in Ehouse Global on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Ehouse Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Affinity Beverage Group vs. Ehouse Global
Performance |
| Timeline |
| Affinity Beverage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ehouse Global |
Affinity Beverage and Ehouse Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affinity Beverage and Ehouse Global
The main advantage of trading using opposite Affinity Beverage and Ehouse Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity Beverage position performs unexpectedly, Ehouse Global 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 Ehouse Global will offset losses from the drop in Ehouse Global's long position.| Affinity Beverage vs. Grocery Outlet Holding | Affinity Beverage vs. Lifevantage | Affinity Beverage vs. National Beverage Corp | Affinity Beverage vs. Balchem |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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