Correlation Between AEON STORES and Experian Plc
Can any of the company-specific risk be diversified away by investing in both AEON STORES and Experian Plc 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 AEON STORES and Experian Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and Experian plc, you can compare the effects of market volatilities on AEON STORES and Experian Plc 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 AEON STORES with a short position of Experian Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and Experian Plc.
Diversification Opportunities for AEON STORES and Experian Plc
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AEON and Experian is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and Experian plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Experian plc and AEON STORES 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 AEON STORES are associated (or correlated) with Experian Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Experian plc has no effect on the direction of AEON STORES i.e., AEON STORES and Experian Plc go up and down completely randomly.
Pair Corralation between AEON STORES and Experian Plc
If you would invest 4,160 in Experian plc on November 6, 2024 and sell it today you would earn a total of 580.00 from holding Experian plc or generate 13.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AEON STORES vs. Experian plc
Performance |
| Timeline |
| AEON STORES |
| Experian plc |
AEON STORES and Experian Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and Experian Plc
The main advantage of trading using opposite AEON STORES and Experian Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, Experian Plc 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 Experian Plc will offset losses from the drop in Experian Plc's long position.| AEON STORES vs. Penn National Gaming | AEON STORES vs. CONTAGIOUS GAMING INC | AEON STORES vs. Thai Beverage Public | AEON STORES vs. Scientific Games |
| Experian Plc vs. UNITED UTILITIES GR | Experian Plc vs. ANTA SPORTS PRODUCT | Experian Plc vs. Townsquare Media | Experian Plc vs. INTERCONT HOTELS |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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