Correlation Between Emerald Expositions and Fluent
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and Fluent 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 Fluent 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 Fluent Inc, you can compare the effects of market volatilities on Emerald Expositions and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Fluent.
Diversification Opportunities for Emerald Expositions and Fluent
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emerald and Fluent is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and Fluent go up and down completely randomly.
Pair Corralation between Emerald Expositions and Fluent
Considering the 90-day investment horizon Emerald Expositions Events is expected to generate 0.73 times more return on investment than Fluent. However, Emerald Expositions Events is 1.37 times less risky than Fluent. It trades about 0.0 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.12 per unit of risk. If you would invest 497.00 in Emerald Expositions Events on August 29, 2024 and sell it today you would lose (14.00) from holding Emerald Expositions Events or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Emerald Expositions Events vs. Fluent Inc
Performance |
| Timeline |
| Emerald Expositions |
| Fluent Inc |
Emerald Expositions and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and Fluent
The main advantage of trading using opposite Emerald Expositions and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Innovid Corp |
| Fluent vs. Capital Income Builder | Fluent vs. Direxion Daily FTSE | Fluent vs. Dodge Global Stock | Fluent vs. Collegium Pharmaceutical |
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.
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