Correlation Between ESE Entertainment and Lite Access
Can any of the company-specific risk be diversified away by investing in both ESE Entertainment and Lite Access 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 ESE Entertainment and Lite Access into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESE Entertainment and Lite Access Technologies, you can compare the effects of market volatilities on ESE Entertainment and Lite Access 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 ESE Entertainment with a short position of Lite Access. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESE Entertainment and Lite Access.
Diversification Opportunities for ESE Entertainment and Lite Access
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ESE and Lite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ESE Entertainment and Lite Access Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lite Access Technologies and ESE Entertainment 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 ESE Entertainment are associated (or correlated) with Lite Access. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lite Access Technologies has no effect on the direction of ESE Entertainment i.e., ESE Entertainment and Lite Access go up and down completely randomly.
Pair Corralation between ESE Entertainment and Lite Access
If you would invest 6.00 in ESE Entertainment on September 1, 2024 and sell it today you would earn a total of 0.50 from holding ESE Entertainment or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ESE Entertainment vs. Lite Access Technologies
Performance |
| Timeline |
| ESE Entertainment |
| Lite Access Technologies |
ESE Entertainment and Lite Access Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESE Entertainment and Lite Access
The main advantage of trading using opposite ESE Entertainment and Lite Access positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESE Entertainment position performs unexpectedly, Lite Access 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 Lite Access will offset losses from the drop in Lite Access' long position.| ESE Entertainment vs. VerticalScope Holdings | ESE Entertainment vs. WildBrain | ESE Entertainment vs. iShares Canadian HYBrid | ESE Entertainment vs. Altagas Cum Red |
| Lite Access vs. Braille Energy Systems | Lite Access vs. Manganese X Energy | Lite Access vs. Solar Alliance Energy | Lite Access vs. Therma Bright |
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 Stocks Directory module to find actively traded stocks across global markets.
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