Correlation Between AM EAGLE and PT Global
Can any of the company-specific risk be diversified away by investing in both AM EAGLE and PT 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 AM EAGLE and PT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and PT Global Mediacom, you can compare the effects of market volatilities on AM EAGLE and PT 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 AM EAGLE with a short position of PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and PT Global.
Diversification Opportunities for AM EAGLE and PT Global
Modest diversification
The 3 months correlation between AFG and 06L is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom and AM 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 AM EAGLE OUTFITTERS are associated (or correlated) with PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of AM EAGLE i.e., AM EAGLE and PT Global go up and down completely randomly.
Pair Corralation between AM EAGLE and PT Global
If you would invest 1,760 in AM EAGLE OUTFITTERS on September 5, 2024 and sell it today you would earn a total of 130.00 from holding AM EAGLE OUTFITTERS or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. PT Global Mediacom
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| PT Global Mediacom |
AM EAGLE and PT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and PT Global
The main advantage of trading using opposite AM EAGLE and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE position performs unexpectedly, PT 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 PT Global will offset losses from the drop in PT Global's long position.| AM EAGLE vs. Compagnie Plastic Omnium | AM EAGLE vs. ANGLER GAMING PLC | AM EAGLE vs. THRACE PLASTICS | AM EAGLE vs. GAMESTOP |
| PT Global vs. VIRGIN WINES UK | PT Global vs. Spirent Communications plc | PT Global vs. Mobilezone Holding AG | PT Global vs. Nordic Semiconductor ASA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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