Correlation Between Empire Global and Ebara Corp
Can any of the company-specific risk be diversified away by investing in both Empire Global and Ebara Corp 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 Empire Global and Ebara Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire Global Gaming and Ebara Corp ADR, you can compare the effects of market volatilities on Empire Global and Ebara Corp 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 Empire Global with a short position of Ebara Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire Global and Ebara Corp.
Diversification Opportunities for Empire Global and Ebara Corp
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empire and Ebara is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Empire Global Gaming and Ebara Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebara Corp ADR and Empire Global 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 Empire Global Gaming are associated (or correlated) with Ebara Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebara Corp ADR has no effect on the direction of Empire Global i.e., Empire Global and Ebara Corp go up and down completely randomly.
Pair Corralation between Empire Global and Ebara Corp
If you would invest 843.00 in Ebara Corp ADR on November 27, 2024 and sell it today you would earn a total of 17.00 from holding Ebara Corp ADR or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Empire Global Gaming vs. Ebara Corp ADR
Performance |
| Timeline |
| Empire Global Gaming |
Risk-Adjusted Performance
Good
Weak | Strong |
| Ebara Corp ADR |
Empire Global and Ebara Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire Global and Ebara Corp
The main advantage of trading using opposite Empire Global and Ebara Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire Global position performs unexpectedly, Ebara Corp 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 Ebara Corp will offset losses from the drop in Ebara Corp's long position.| Empire Global vs. Churchill Downs Incorporated | Empire Global vs. Gan | Empire Global vs. Rush Street Interactive | Empire Global vs. Lottery, Common Stock |
| Ebara Corp vs. Xinjiang Goldwind Science | Ebara Corp vs. Schneider Electric SE | Ebara Corp vs. Vestas Wind Systems |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |