Correlation Between American Eagle and PT Global
Can any of the company-specific risk be diversified away by investing in both American 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 American 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 American Eagle Outfitters and PT Global Mediacom, you can compare the effects of market volatilities on American 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 American Eagle with a short position of PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and PT Global.
Diversification Opportunities for American Eagle and PT Global
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and 06L is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding American 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 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 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 American Eagle i.e., American Eagle and PT Global go up and down completely randomly.
Pair Corralation between American Eagle and PT Global
If you would invest 1,760 in American Eagle Outfitters on September 5, 2024 and sell it today you would earn a total of 130.00 from holding American 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 |
American Eagle Outfitters vs. PT Global Mediacom
Performance |
| Timeline |
| American Eagle Outfitters |
| PT Global Mediacom |
American Eagle and PT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and PT Global
The main advantage of trading using opposite American Eagle and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American 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.| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |