Correlation Between Emerald Expositions and Glory Star
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and Glory Star 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 Glory Star 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 Glory Star New, you can compare the effects of market volatilities on Emerald Expositions and Glory Star 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 Glory Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Glory Star.
Diversification Opportunities for Emerald Expositions and Glory Star
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emerald and Glory is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Glory Star New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glory Star New 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 Glory Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glory Star New has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and Glory Star go up and down completely randomly.
Pair Corralation between Emerald Expositions and Glory Star
If you would invest 365.00 in Emerald Expositions Events on January 12, 2025 and sell it today you would lose (8.00) from holding Emerald Expositions Events or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Emerald Expositions Events vs. Glory Star New
Performance |
| Timeline |
| Emerald Expositions |
| Glory Star New |
Risk-Adjusted Performance
Good
Weak | Strong |
Emerald Expositions and Glory Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and Glory Star
The main advantage of trading using opposite Emerald Expositions and Glory Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, Glory Star 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 Glory Star will offset losses from the drop in Glory Star's long position.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Clear Channel Outdoor |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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