Correlation Between Electronic Arts and PACIFIC
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By analyzing existing cross correlation between Electronic Arts and PACIFIC GAS AND, you can compare the effects of market volatilities on Electronic Arts and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and PACIFIC.
Diversification Opportunities for Electronic Arts and PACIFIC
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Electronic and PACIFIC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of Electronic Arts i.e., Electronic Arts and PACIFIC go up and down completely randomly.
Pair Corralation between Electronic Arts and PACIFIC
Allowing for the 90-day total investment horizon Electronic Arts is expected to under-perform the PACIFIC. In addition to that, Electronic Arts is 3.08 times more volatile than PACIFIC GAS AND. It trades about 0.0 of its total potential returns per unit of risk. PACIFIC GAS AND is currently generating about 0.02 per unit of volatility. If you would invest 9,521 in PACIFIC GAS AND on December 2, 2024 and sell it today you would earn a total of 158.00 from holding PACIFIC GAS AND or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Electronic Arts vs. PACIFIC GAS AND
Performance |
| Timeline |
| Electronic Arts |
| PACIFIC GAS AND |
Electronic Arts and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and PACIFIC
The main advantage of trading using opposite Electronic Arts and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC'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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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