Correlation Between Ellington Financial and Hollywood Intermediate
Can any of the company-specific risk be diversified away by investing in both Ellington Financial and Hollywood Intermediate 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 Ellington Financial and Hollywood Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellington Financial and Hollywood Intermediate, you can compare the effects of market volatilities on Ellington Financial and Hollywood Intermediate 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 Ellington Financial with a short position of Hollywood Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellington Financial and Hollywood Intermediate.
Diversification Opportunities for Ellington Financial and Hollywood Intermediate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ellington and Hollywood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ellington Financial and Hollywood Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Intermediate and Ellington Financial 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 Ellington Financial are associated (or correlated) with Hollywood Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Intermediate has no effect on the direction of Ellington Financial i.e., Ellington Financial and Hollywood Intermediate go up and down completely randomly.
Pair Corralation between Ellington Financial and Hollywood Intermediate
If you would invest 2,554 in Ellington Financial on October 9, 2024 and sell it today you would earn a total of 2.00 from holding Ellington Financial or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Ellington Financial vs. Hollywood Intermediate
Performance |
| Timeline |
| Ellington Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Hollywood Intermediate |
Ellington Financial and Hollywood Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellington Financial and Hollywood Intermediate
The main advantage of trading using opposite Ellington Financial and Hollywood Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellington Financial position performs unexpectedly, Hollywood Intermediate 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 Hollywood Intermediate will offset losses from the drop in Hollywood Intermediate's long position.| Ellington Financial vs. Borr Drilling | Ellington Financial vs. Nabors Industries | Ellington Financial vs. Motorsport Gaming Us | Ellington Financial vs. Gamehost |
| Hollywood Intermediate vs. Liberty Media | Hollywood Intermediate vs. Atlanta Braves Holdings, | Hollywood Intermediate vs. News Corp B | Hollywood Intermediate vs. News Corp A |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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