Correlation Between Cboe UK and Eclectic Bar
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By analyzing existing cross correlation between Cboe UK Consumer and Eclectic Bar Group, you can compare the effects of market volatilities on Cboe UK and Eclectic Bar 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 Cboe UK with a short position of Eclectic Bar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Eclectic Bar.
Diversification Opportunities for Cboe UK and Eclectic Bar
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cboe and Eclectic is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Eclectic Bar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eclectic Bar Group and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Eclectic Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eclectic Bar Group has no effect on the direction of Cboe UK i.e., Cboe UK and Eclectic Bar go up and down completely randomly.
Pair Corralation between Cboe UK and Eclectic Bar
Assuming the 90 days trading horizon Cboe UK Consumer is expected to under-perform the Eclectic Bar. But the index apears to be less risky and, when comparing its historical volatility, Cboe UK Consumer is 25.16 times less risky than Eclectic Bar. The index trades about -0.04 of its potential returns per unit of risk. The Eclectic Bar Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,200 in Eclectic Bar Group on September 24, 2024 and sell it today you would earn a total of 2,500 from holding Eclectic Bar Group or generate 113.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Eclectic Bar Group
Performance |
| Timeline |
Cboe UK and Eclectic Bar Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Eclectic Bar Group
Pair trading matchups for Eclectic Bar
Pair Trading with Cboe UK and Eclectic Bar
The main advantage of trading using opposite Cboe UK and Eclectic Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Eclectic Bar 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 Eclectic Bar will offset losses from the drop in Eclectic Bar's long position.| Cboe UK vs. AMG Advanced Metallurgical | Cboe UK vs. Bloomsbury Publishing Plc | Cboe UK vs. CleanTech Lithium plc | Cboe UK vs. Fulcrum Metals PLC |
| Eclectic Bar vs. Toyota Motor Corp | Eclectic Bar vs. SoftBank Group Corp | Eclectic Bar vs. OTP Bank Nyrt | Eclectic Bar vs. Newmont Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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