Correlation Between Electronic Arts and Swarmio Media
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and Swarmio Media 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 Electronic Arts and Swarmio Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Swarmio Media Holdings, you can compare the effects of market volatilities on Electronic Arts and Swarmio Media 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 Electronic Arts with a short position of Swarmio Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Swarmio Media.
Diversification Opportunities for Electronic Arts and Swarmio Media
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Electronic and Swarmio is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and Swarmio Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swarmio Media Holdings and Electronic Arts 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 Electronic Arts are associated (or correlated) with Swarmio Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swarmio Media Holdings has no effect on the direction of Electronic Arts i.e., Electronic Arts and Swarmio Media go up and down completely randomly.
Pair Corralation between Electronic Arts and Swarmio Media
If you would invest 0.67 in Swarmio Media Holdings on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Swarmio Media Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Electronic Arts vs. Swarmio Media Holdings
Performance |
| Timeline |
| Electronic Arts |
| Swarmio Media Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Electronic Arts and Swarmio Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Swarmio Media
The main advantage of trading using opposite Electronic Arts and Swarmio Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, Swarmio Media 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 Swarmio Media will offset losses from the drop in Swarmio Media's long position.| Electronic Arts vs. Nintendo Co ADR | Electronic Arts vs. Roblox Corp | Electronic Arts vs. NetEase | Electronic Arts vs. Take Two Interactive Software |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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