Correlation Between Empire Global and Media Sentiment
Can any of the company-specific risk be diversified away by investing in both Empire Global and Media Sentiment 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 Media Sentiment 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 Media Sentiment, you can compare the effects of market volatilities on Empire Global and Media Sentiment 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 Media Sentiment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire Global and Media Sentiment.
Diversification Opportunities for Empire Global and Media Sentiment
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Empire and Media is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Empire Global Gaming and Media Sentiment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Sentiment 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 Media Sentiment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Sentiment has no effect on the direction of Empire Global i.e., Empire Global and Media Sentiment go up and down completely randomly.
Pair Corralation between Empire Global and Media Sentiment
Given the investment horizon of 90 days Empire Global Gaming is expected to under-perform the Media Sentiment. But the pink sheet apears to be less risky and, when comparing its historical volatility, Empire Global Gaming is 1.0 times less risky than Media Sentiment. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Media Sentiment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Media Sentiment on September 3, 2024 and sell it today you would earn a total of 3.50 from holding Media Sentiment or generate 58.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Empire Global Gaming vs. Media Sentiment
Performance |
| Timeline |
| Empire Global Gaming |
| Media Sentiment |
Empire Global and Media Sentiment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire Global and Media Sentiment
The main advantage of trading using opposite Empire Global and Media Sentiment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire Global position performs unexpectedly, Media Sentiment 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 Media Sentiment will offset losses from the drop in Media Sentiment's long position.| Empire Global vs. Everi Holdings | Empire Global vs. Intema Solutions | Empire Global vs. 888 Holdings | Empire Global vs. Real Luck Group |
| Media Sentiment vs. Meta Platforms | Media Sentiment vs. Alphabet Inc Class C | Media Sentiment vs. Twilio Inc | Media Sentiment vs. Snap Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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