Correlation Between American Eagle and EEDUCATION ALBERT
Can any of the company-specific risk be diversified away by investing in both American Eagle and EEDUCATION ALBERT 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 EEDUCATION ALBERT 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 EEDUCATION ALBERT AB, you can compare the effects of market volatilities on American Eagle and EEDUCATION ALBERT 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 EEDUCATION ALBERT. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and EEDUCATION ALBERT.
Diversification Opportunities for American Eagle and EEDUCATION ALBERT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and EEDUCATION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and EEDUCATION ALBERT AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EEDUCATION ALBERT 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 EEDUCATION ALBERT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EEDUCATION ALBERT has no effect on the direction of American Eagle i.e., American Eagle and EEDUCATION ALBERT go up and down completely randomly.
Pair Corralation between American Eagle and EEDUCATION ALBERT
If you would invest 1,820 in American Eagle Outfitters on September 3, 2024 and sell it today you would lose (70.00) from holding American Eagle Outfitters or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
American Eagle Outfitters vs. EEDUCATION ALBERT AB
Performance |
| Timeline |
| American Eagle Outfitters |
| EEDUCATION ALBERT |
American Eagle and EEDUCATION ALBERT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and EEDUCATION ALBERT
The main advantage of trading using opposite American Eagle and EEDUCATION ALBERT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, EEDUCATION ALBERT 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 EEDUCATION ALBERT will offset losses from the drop in EEDUCATION ALBERT's long position.| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
| EEDUCATION ALBERT vs. Salesforce | EEDUCATION ALBERT vs. Rocket Internet SE | EEDUCATION ALBERT vs. Superior Plus Corp | EEDUCATION ALBERT vs. NMI Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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