Correlation Between Electronic Arts and Focus Home
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and Focus Home 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 Electronic Arts and Focus Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Focus Home Interactive, you can compare the effects of market volatilities on Electronic Arts and Focus Home 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 Electronic Arts with a short position of Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Focus Home.
Diversification Opportunities for Electronic Arts and Focus Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electronic and Focus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive and Electronic Arts 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 Electronic Arts are associated (or correlated) with Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of Electronic Arts i.e., Electronic Arts and Focus Home go up and down completely randomly.
Pair Corralation between Electronic Arts and Focus Home
If you would invest 2,415 in Focus Home Interactive on September 15, 2024 and sell it today you would lose (330.00) from holding Focus Home Interactive or give up 13.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Electronic Arts vs. Focus Home Interactive
Performance |
| Timeline |
| Electronic Arts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Focus Home Interactive |
Electronic Arts and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Focus Home
The main advantage of trading using opposite Electronic Arts and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's long position.| Electronic Arts vs. Transportadora de Gas | Electronic Arts vs. National Storage Affiliates | Electronic Arts vs. DOCDATA | Electronic Arts vs. SCIENCE IN SPORT |
| Focus Home vs. NEXON Co | Focus Home vs. Take Two Interactive Software | Focus Home vs. Superior Plus Corp | Focus Home vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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