Correlation Between Echo Investment and Baked Games
Can any of the company-specific risk be diversified away by investing in both Echo Investment and Baked Games 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 Echo Investment and Baked Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Echo Investment SA and Baked Games SA, you can compare the effects of market volatilities on Echo Investment and Baked Games 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 Echo Investment with a short position of Baked Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Echo Investment and Baked Games.
Diversification Opportunities for Echo Investment and Baked Games
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Echo and Baked is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Echo Investment SA and Baked Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baked Games SA and Echo Investment 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 Echo Investment SA are associated (or correlated) with Baked Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baked Games SA has no effect on the direction of Echo Investment i.e., Echo Investment and Baked Games go up and down completely randomly.
Pair Corralation between Echo Investment and Baked Games
Assuming the 90 days trading horizon Echo Investment SA is expected to generate 0.49 times more return on investment than Baked Games. However, Echo Investment SA is 2.04 times less risky than Baked Games. It trades about 0.04 of its potential returns per unit of risk. Baked Games SA is currently generating about -0.04 per unit of risk. If you would invest 310.00 in Echo Investment SA on December 1, 2024 and sell it today you would earn a total of 111.00 from holding Echo Investment SA or generate 35.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.76% |
| Values | Daily Returns |
Echo Investment SA vs. Baked Games SA
Performance |
| Timeline |
| Echo Investment SA |
| Baked Games SA |
Echo Investment and Baked Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Echo Investment and Baked Games
The main advantage of trading using opposite Echo Investment and Baked Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Echo Investment position performs unexpectedly, Baked Games 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 Baked Games will offset losses from the drop in Baked Games' long position.| Echo Investment vs. Creativeforge Games SA | Echo Investment vs. SOFTWARE MANSION SPOLKA | Echo Investment vs. UF Games SA | Echo Investment vs. Movie Games SA |
| Baked Games vs. SOFTWARE MANSION SPOLKA | Baked Games vs. Gaming Factory SA | Baked Games vs. LSI Software SA | Baked Games vs. All In Games |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |