Correlation Between Ebet and Lotus Technology
Can any of the company-specific risk be diversified away by investing in both Ebet and Lotus Technology 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 Ebet and Lotus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebet Inc and Lotus Technology Warrants, you can compare the effects of market volatilities on Ebet and Lotus Technology 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 Ebet with a short position of Lotus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebet and Lotus Technology.
Diversification Opportunities for Ebet and Lotus Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ebet and Lotus is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ebet Inc and Lotus Technology Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Technology Warrants and Ebet 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 Ebet Inc are associated (or correlated) with Lotus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Technology Warrants has no effect on the direction of Ebet i.e., Ebet and Lotus Technology go up and down completely randomly.
Pair Corralation between Ebet and Lotus Technology
If you would invest 27.00 in Lotus Technology Warrants on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Lotus Technology Warrants or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 7.69% |
| Values | Daily Returns |
Ebet Inc vs. Lotus Technology Warrants
Performance |
| Timeline |
| Ebet Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lotus Technology Warrants |
Ebet and Lotus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebet and Lotus Technology
The main advantage of trading using opposite Ebet and Lotus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebet position performs unexpectedly, Lotus Technology 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 Lotus Technology will offset losses from the drop in Lotus Technology's long position.| Ebet vs. PointsBet Holdings Limited | Ebet vs. Gan | Ebet vs. Rush Street Interactive | Ebet vs. Lottery, Warrants |
| Lotus Technology vs. F PD | Lotus Technology vs. China Yuchai International | Lotus Technology vs. Canoo Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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