Correlation Between Mxima Renda and EBay
Can any of the company-specific risk be diversified away by investing in both Mxima Renda and EBay 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 Mxima Renda and EBay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mxima Renda Corporativa and eBay Inc, you can compare the effects of market volatilities on Mxima Renda and EBay 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 Mxima Renda with a short position of EBay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mxima Renda and EBay.
Diversification Opportunities for Mxima Renda and EBay
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mxima and EBay is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mxima Renda Corporativa and eBay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eBay Inc and Mxima Renda 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 Mxima Renda Corporativa are associated (or correlated) with EBay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eBay Inc has no effect on the direction of Mxima Renda i.e., Mxima Renda and EBay go up and down completely randomly.
Pair Corralation between Mxima Renda and EBay
Assuming the 90 days trading horizon Mxima Renda is expected to generate 11.55 times less return on investment than EBay. But when comparing it to its historical volatility, Mxima Renda Corporativa is 1.1 times less risky than EBay. It trades about 0.01 of its potential returns per unit of risk. eBay Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 17,980 in eBay Inc on August 30, 2024 and sell it today you would earn a total of 965.00 from holding eBay Inc or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mxima Renda Corporativa vs. eBay Inc
Performance |
| Timeline |
| Mxima Renda Corporativa |
| eBay Inc |
Mxima Renda and EBay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mxima Renda and EBay
The main advantage of trading using opposite Mxima Renda and EBay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mxima Renda position performs unexpectedly, EBay 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 EBay will offset losses from the drop in EBay's long position.| Mxima Renda vs. Real Estate Investment | Mxima Renda vs. NAVI CRDITO IMOBILIRIO | Mxima Renda vs. LIFE CAPITAL PARTNERS | Mxima Renda vs. Cshg Jhsf Prime |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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