Correlation Between Eline Entertainment and Metalink
Can any of the company-specific risk be diversified away by investing in both Eline Entertainment and Metalink 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 Metalink 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 Metalink, you can compare the effects of market volatilities on Eline Entertainment and Metalink 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 Metalink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eline Entertainment and Metalink.
Diversification Opportunities for Eline Entertainment and Metalink
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eline and Metalink is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group and Metalink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalink 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 Metalink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalink has no effect on the direction of Eline Entertainment i.e., Eline Entertainment and Metalink go up and down completely randomly.
Pair Corralation between Eline Entertainment and Metalink
Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 0.63 times more return on investment than Metalink. However, Eline Entertainment Group is 1.58 times less risky than Metalink. It trades about 0.1 of its potential returns per unit of risk. Metalink is currently generating about 0.04 per unit of risk. If you would invest 0.04 in Eline Entertainment Group on September 5, 2024 and sell it today you would lose (0.03) from holding Eline Entertainment Group or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Eline Entertainment Group vs. Metalink
Performance |
| Timeline |
| Eline Entertainment |
| Metalink |
Eline Entertainment and Metalink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eline Entertainment and Metalink
The main advantage of trading using opposite Eline Entertainment and Metalink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eline Entertainment position performs unexpectedly, Metalink 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 Metalink will offset losses from the drop in Metalink'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 |
| Metalink vs. Eline Entertainment Group | Metalink vs. Green Leaf Innovations | Metalink vs. Plandai Biotech | Metalink vs. All American Gld |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |