Correlation Between EBay and MEITUAN UNSPADR/2B
Can any of the company-specific risk be diversified away by investing in both EBay and MEITUAN UNSPADR/2B 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 EBay and MEITUAN UNSPADR/2B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eBay Inc and MEITUAN UNSPADR2B, you can compare the effects of market volatilities on EBay and MEITUAN UNSPADR/2B 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 EBay with a short position of MEITUAN UNSPADR/2B. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBay and MEITUAN UNSPADR/2B.
Diversification Opportunities for EBay and MEITUAN UNSPADR/2B
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EBay and MEITUAN is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding eBay Inc and MEITUAN UNSPADR2B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITUAN UNSPADR/2B and EBay 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 eBay Inc are associated (or correlated) with MEITUAN UNSPADR/2B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITUAN UNSPADR/2B has no effect on the direction of EBay i.e., EBay and MEITUAN UNSPADR/2B go up and down completely randomly.
Pair Corralation between EBay and MEITUAN UNSPADR/2B
Assuming the 90 days trading horizon eBay Inc is expected to generate 0.51 times more return on investment than MEITUAN UNSPADR/2B. However, eBay Inc is 1.97 times less risky than MEITUAN UNSPADR/2B. It trades about 0.05 of its potential returns per unit of risk. MEITUAN UNSPADR2B is currently generating about 0.02 per unit of risk. If you would invest 4,023 in eBay Inc on August 24, 2024 and sell it today you would earn a total of 2,048 from holding eBay Inc or generate 50.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.84% |
| Values | Daily Returns |
eBay Inc vs. MEITUAN UNSPADR2B
Performance |
| Timeline |
| eBay Inc |
| MEITUAN UNSPADR/2B |
EBay and MEITUAN UNSPADR/2B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBay and MEITUAN UNSPADR/2B
The main advantage of trading using opposite EBay and MEITUAN UNSPADR/2B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBay position performs unexpectedly, MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B will offset losses from the drop in MEITUAN UNSPADR/2B's long position.| EBay vs. Federal Agricultural Mortgage | EBay vs. Hitachi Construction Machinery | EBay vs. Casio Computer CoLtd | EBay vs. Sunny Optical Technology |
| MEITUAN UNSPADR/2B vs. Siamgas And Petrochemicals | MEITUAN UNSPADR/2B vs. MCEWEN MINING INC | MEITUAN UNSPADR/2B vs. Perseus Mining Limited | MEITUAN UNSPADR/2B vs. QIIWI GAMES AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |