Correlation Between Eline Entertainment and All American
Can any of the company-specific risk be diversified away by investing in both Eline Entertainment and All American 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 Eline Entertainment and All American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eline Entertainment Group and All American Gld, you can compare the effects of market volatilities on Eline Entertainment and All American 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 Eline Entertainment with a short position of All American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eline Entertainment and All American.
Diversification Opportunities for Eline Entertainment and All American
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eline and All is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group and All American Gld in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All American Gld and Eline Entertainment 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 Eline Entertainment Group are associated (or correlated) with All American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All American Gld has no effect on the direction of Eline Entertainment i.e., Eline Entertainment and All American go up and down completely randomly.
Pair Corralation between Eline Entertainment and All American
Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 9.19 times more return on investment than All American. However, Eline Entertainment is 9.19 times more volatile than All American Gld. It trades about 0.24 of its potential returns per unit of risk. All American Gld is currently generating about -0.06 per unit of risk. If you would invest 0.01 in Eline Entertainment Group on September 1, 2024 and sell it today you would earn a total of 0.01 from holding Eline Entertainment Group or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eline Entertainment Group vs. All American Gld
Performance |
| Timeline |
| Eline Entertainment |
| All American Gld |
Eline Entertainment and All American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eline Entertainment and All American
The main advantage of trading using opposite Eline Entertainment and All American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eline Entertainment position performs unexpectedly, All American 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 All American will offset losses from the drop in All American's long position.| Eline Entertainment vs. Icon Media Holdings | Eline Entertainment vs. Green Leaf Innovations | Eline Entertainment vs. Plandai Biotech | Eline Entertainment vs. All American Gld |
| All American vs. American Leisure Holdings | All American vs. Supurva Healthcare Group | All American vs. China Health Management | All American vs. Embrace Change Acquisition |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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