Correlation Between ENGlobal and LifeGoal Investments
Can any of the company-specific risk be diversified away by investing in both ENGlobal and LifeGoal Investments 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 ENGlobal and LifeGoal Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENGlobal and LifeGoal Investments, you can compare the effects of market volatilities on ENGlobal and LifeGoal Investments 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 ENGlobal with a short position of LifeGoal Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENGlobal and LifeGoal Investments.
Diversification Opportunities for ENGlobal and LifeGoal Investments
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ENGlobal and LifeGoal is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ENGlobal and LifeGoal Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeGoal Investments and ENGlobal 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 ENGlobal are associated (or correlated) with LifeGoal Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeGoal Investments has no effect on the direction of ENGlobal i.e., ENGlobal and LifeGoal Investments go up and down completely randomly.
Pair Corralation between ENGlobal and LifeGoal Investments
If you would invest 136.00 in ENGlobal on September 3, 2024 and sell it today you would lose (2.00) from holding ENGlobal or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
ENGlobal vs. LifeGoal Investments
Performance |
| Timeline |
| ENGlobal |
| LifeGoal Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ENGlobal and LifeGoal Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENGlobal and LifeGoal Investments
The main advantage of trading using opposite ENGlobal and LifeGoal Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENGlobal position performs unexpectedly, LifeGoal Investments 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 LifeGoal Investments will offset losses from the drop in LifeGoal Investments' long position.| ENGlobal vs. Fuel Tech | ENGlobal vs. Polar Power | ENGlobal vs. Ocean Power Technologies | ENGlobal vs. Pioneer Power Solutions |
| LifeGoal Investments vs. ENGlobal | LifeGoal Investments vs. WisdomTree MidCap Earnings | LifeGoal Investments vs. US Global Investors |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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