Correlation Between Eclectic Bar and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Eclectic Bar and Cembra Money 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 Eclectic Bar and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eclectic Bar Group and Cembra Money Bank, you can compare the effects of market volatilities on Eclectic Bar and Cembra Money 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 Eclectic Bar with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eclectic Bar and Cembra Money.
Diversification Opportunities for Eclectic Bar and Cembra Money
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eclectic and Cembra is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eclectic Bar Group and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank and Eclectic Bar 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 Eclectic Bar Group are associated (or correlated) with Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Eclectic Bar i.e., Eclectic Bar and Cembra Money go up and down completely randomly.
Pair Corralation between Eclectic Bar and Cembra Money
If you would invest 8,195 in Cembra Money Bank on November 1, 2024 and sell it today you would earn a total of 820.00 from holding Cembra Money Bank or generate 10.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eclectic Bar Group vs. Cembra Money Bank
Performance |
| Timeline |
| Eclectic Bar Group |
| Cembra Money Bank |
Eclectic Bar and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eclectic Bar and Cembra Money
The main advantage of trading using opposite Eclectic Bar and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eclectic Bar position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Eclectic Bar vs. Cembra Money Bank | Eclectic Bar vs. Nordea Bank Abp | Eclectic Bar vs. Advanced Medical Solutions | Eclectic Bar vs. Discover Financial Services |
| Cembra Money vs. Take Two Interactive Software | Cembra Money vs. Pfeiffer Vacuum Technology | Cembra Money vs. Worldwide Healthcare Trust | Cembra Money vs. Vitec Software Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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