Correlation Between American Eagle and Evertz Technologies
Can any of the company-specific risk be diversified away by investing in both American Eagle and Evertz Technologies 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 American Eagle and Evertz Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Eagle Outfitters and Evertz Technologies Limited, you can compare the effects of market volatilities on American Eagle and Evertz Technologies 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 American Eagle with a short position of Evertz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and Evertz Technologies.
Diversification Opportunities for American Eagle and Evertz Technologies
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between American and Evertz is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and Evertz Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertz Technologies and American Eagle 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 American Eagle Outfitters are associated (or correlated) with Evertz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertz Technologies has no effect on the direction of American Eagle i.e., American Eagle and Evertz Technologies go up and down completely randomly.
Pair Corralation between American Eagle and Evertz Technologies
Considering the 90-day investment horizon American Eagle Outfitters is expected to under-perform the Evertz Technologies. In addition to that, American Eagle is 7.15 times more volatile than Evertz Technologies Limited. It trades about -0.01 of its total potential returns per unit of risk. Evertz Technologies Limited is currently generating about 0.2 per unit of volatility. If you would invest 868.00 in Evertz Technologies Limited on September 13, 2024 and sell it today you would earn a total of 22.00 from holding Evertz Technologies Limited or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Eagle Outfitters vs. Evertz Technologies Limited
Performance |
| Timeline |
| American Eagle Outfitters |
| Evertz Technologies |
American Eagle and Evertz Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and Evertz Technologies
The main advantage of trading using opposite American Eagle and Evertz Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, Evertz Technologies 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 Evertz Technologies will offset losses from the drop in Evertz Technologies' long position.| American Eagle vs. Capri Holdings | American Eagle vs. Movado Group | American Eagle vs. Tapestry | American Eagle vs. Brilliant Earth Group |
| Evertz Technologies vs. Boxlight Corp Class | Evertz Technologies vs. Siyata Mobile | Evertz Technologies vs. ClearOne |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |