Correlation Between Cboe UK and EJF Investments
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By analyzing existing cross correlation between Cboe UK Consumer and EJF Investments, you can compare the effects of market volatilities on Cboe UK and EJF Investments 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 EJF Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and EJF Investments.
Diversification Opportunities for Cboe UK and EJF Investments
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cboe and EJF is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and EJF Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EJF Investments 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 EJF Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EJF Investments has no effect on the direction of Cboe UK i.e., Cboe UK and EJF Investments go up and down completely randomly.
Pair Corralation between Cboe UK and EJF Investments
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.68 times more return on investment than EJF Investments. However, Cboe UK Consumer is 1.48 times less risky than EJF Investments. It trades about 0.06 of its potential returns per unit of risk. EJF Investments is currently generating about 0.0 per unit of risk. If you would invest 2,364,918 in Cboe UK Consumer on October 11, 2024 and sell it today you would earn a total of 803,708 from holding Cboe UK Consumer or generate 33.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.61% |
| Values | Daily Returns |
Cboe UK Consumer vs. EJF Investments
Performance |
| Timeline |
Cboe UK and EJF Investments Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
EJF Investments
Pair trading matchups for EJF Investments
Pair Trading with Cboe UK and EJF Investments
The main advantage of trading using opposite Cboe UK and EJF Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, EJF Investments 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 EJF Investments will offset losses from the drop in EJF Investments' long position.| Cboe UK vs. Light Science Technologies | Cboe UK vs. Pressure Technologies Plc | Cboe UK vs. Spirent Communications plc | Cboe UK vs. PureTech Health plc |
| EJF Investments vs. Fevertree Drinks Plc | EJF Investments vs. Ecclesiastical Insurance Office | EJF Investments vs. GreenX Metals | EJF Investments vs. Associated British Foods |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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