Correlation Between American Eagle and HELIX BIOPHARMA
Can any of the company-specific risk be diversified away by investing in both American Eagle and HELIX BIOPHARMA 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 HELIX BIOPHARMA 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 HELIX BIOPHARMA, you can compare the effects of market volatilities on American Eagle and HELIX BIOPHARMA 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 HELIX BIOPHARMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and HELIX BIOPHARMA.
Diversification Opportunities for American Eagle and HELIX BIOPHARMA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and HELIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and HELIX BIOPHARMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HELIX BIOPHARMA 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 HELIX BIOPHARMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HELIX BIOPHARMA has no effect on the direction of American Eagle i.e., American Eagle and HELIX BIOPHARMA go up and down completely randomly.
Pair Corralation between American Eagle and HELIX BIOPHARMA
If you would invest 1,690 in American Eagle Outfitters on September 12, 2024 and sell it today you would lose (10.00) from holding American Eagle Outfitters or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
American Eagle Outfitters vs. HELIX BIOPHARMA
Performance |
| Timeline |
| American Eagle Outfitters |
| HELIX BIOPHARMA |
American Eagle and HELIX BIOPHARMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and HELIX BIOPHARMA
The main advantage of trading using opposite American Eagle and HELIX BIOPHARMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, HELIX BIOPHARMA 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 HELIX BIOPHARMA will offset losses from the drop in HELIX BIOPHARMA's long position.| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
| HELIX BIOPHARMA vs. SOUTHWEST AIRLINES | HELIX BIOPHARMA vs. CSSC Offshore Marine | HELIX BIOPHARMA vs. Kaiser Aluminum | HELIX BIOPHARMA vs. American Eagle Outfitters |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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