Correlation Between Eline Entertainment and Firan Technology
Can any of the company-specific risk be diversified away by investing in both Eline Entertainment and Firan 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 Eline Entertainment and Firan Technology 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 Firan Technology Group, you can compare the effects of market volatilities on Eline Entertainment and Firan 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 Eline Entertainment with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eline Entertainment and Firan Technology.
Diversification Opportunities for Eline Entertainment and Firan Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eline and Firan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology 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 Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of Eline Entertainment i.e., Eline Entertainment and Firan Technology go up and down completely randomly.
Pair Corralation between Eline Entertainment and Firan Technology
Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 35.09 times more return on investment than Firan Technology. However, Eline Entertainment is 35.09 times more volatile than Firan Technology Group. It trades about 0.19 of its potential returns per unit of risk. Firan Technology Group is currently generating about 0.1 per unit of risk. If you would invest 0.02 in Eline Entertainment Group on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Eline Entertainment Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eline Entertainment Group vs. Firan Technology Group
Performance |
| Timeline |
| Eline Entertainment |
| Firan Technology |
Eline Entertainment and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eline Entertainment and Firan Technology
The main advantage of trading using opposite Eline Entertainment and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eline Entertainment position performs unexpectedly, Firan 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 Firan Technology will offset losses from the drop in Firan Technology's long position.| Eline Entertainment vs. Roku Inc | Eline Entertainment vs. SNM Gobal Holdings | Eline Entertainment vs. Seven Arts Entertainment | Eline Entertainment vs. All For One |
| Firan Technology vs. Deere Company | Firan Technology vs. Caterpillar | Firan Technology vs. Lion Electric Corp | Firan Technology vs. Nikola Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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