Correlation Between 1847 Holdings and EBay
Can any of the company-specific risk be diversified away by investing in both 1847 Holdings and EBay 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 1847 Holdings and EBay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1847 Holdings LLC and eBay Inc, you can compare the effects of market volatilities on 1847 Holdings and EBay 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 1847 Holdings with a short position of EBay. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1847 Holdings and EBay.
Diversification Opportunities for 1847 Holdings and EBay
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 1847 and EBay is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding 1847 Holdings LLC and eBay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eBay Inc and 1847 Holdings 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 1847 Holdings LLC are associated (or correlated) with EBay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eBay Inc has no effect on the direction of 1847 Holdings i.e., 1847 Holdings and EBay go up and down completely randomly.
Pair Corralation between 1847 Holdings and EBay
Given the investment horizon of 90 days 1847 Holdings LLC is expected to under-perform the EBay. In addition to that, 1847 Holdings is 20.65 times more volatile than eBay Inc. It trades about -0.06 of its total potential returns per unit of risk. eBay Inc is currently generating about 0.12 per unit of volatility. If you would invest 5,751 in eBay Inc on August 28, 2024 and sell it today you would earn a total of 748.00 from holding eBay Inc or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
1847 Holdings LLC vs. eBay Inc
Performance |
| Timeline |
| 1847 Holdings LLC |
| eBay Inc |
1847 Holdings and EBay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1847 Holdings and EBay
The main advantage of trading using opposite 1847 Holdings and EBay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1847 Holdings position performs unexpectedly, EBay 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 EBay will offset losses from the drop in EBay's long position.| 1847 Holdings vs. Alliance Recovery | 1847 Holdings vs. Agro Capital Management | 1847 Holdings vs. Ayala | 1847 Holdings vs. Alliance Global Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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