Correlation Between EA Series and LYFE
Can any of the company-specific risk be diversified away by investing in both EA Series and LYFE 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 EA Series and LYFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and LYFE, you can compare the effects of market volatilities on EA Series and LYFE 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 EA Series with a short position of LYFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and LYFE.
Diversification Opportunities for EA Series and LYFE
Very good diversification
The 3 months correlation between DRLL and LYFE is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and LYFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYFE and EA Series 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 EA Series Trust are associated (or correlated) with LYFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYFE has no effect on the direction of EA Series i.e., EA Series and LYFE go up and down completely randomly.
Pair Corralation between EA Series and LYFE
If you would invest 2,753 in EA Series Trust on November 3, 2024 and sell it today you would earn a total of 29.00 from holding EA Series Trust or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
EA Series Trust vs. LYFE
Performance |
| Timeline |
| EA Series Trust |
| LYFE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EA Series and LYFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and LYFE
The main advantage of trading using opposite EA Series and LYFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, LYFE 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 LYFE will offset losses from the drop in LYFE's long position.| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series Trust |
| LYFE vs. ETF Opportunities Trust | LYFE vs. Point Bridge GOP | LYFE vs. EA Series Trust | LYFE vs. EA Series Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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