Correlation Between Emerald Expositions and CyberAgent
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and CyberAgent 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 Emerald Expositions and CyberAgent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Expositions Events and CyberAgent ADR, you can compare the effects of market volatilities on Emerald Expositions and CyberAgent 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 Emerald Expositions with a short position of CyberAgent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and CyberAgent.
Diversification Opportunities for Emerald Expositions and CyberAgent
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerald and CyberAgent is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and CyberAgent ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberAgent ADR and Emerald Expositions 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 Emerald Expositions Events are associated (or correlated) with CyberAgent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberAgent ADR has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and CyberAgent go up and down completely randomly.
Pair Corralation between Emerald Expositions and CyberAgent
Considering the 90-day investment horizon Emerald Expositions Events is expected to generate 1.87 times more return on investment than CyberAgent. However, Emerald Expositions is 1.87 times more volatile than CyberAgent ADR. It trades about 0.08 of its potential returns per unit of risk. CyberAgent ADR is currently generating about -0.22 per unit of risk. If you would invest 464.00 in Emerald Expositions Events on August 27, 2024 and sell it today you would earn a total of 24.00 from holding Emerald Expositions Events or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerald Expositions Events vs. CyberAgent ADR
Performance |
| Timeline |
| Emerald Expositions |
| CyberAgent ADR |
Emerald Expositions and CyberAgent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and CyberAgent
The main advantage of trading using opposite Emerald Expositions and CyberAgent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, CyberAgent 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 CyberAgent will offset losses from the drop in CyberAgent's long position.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Innovid Corp | Emerald Expositions vs. Townsquare Media |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |