Correlation Between European Wax and First Ship
Can any of the company-specific risk be diversified away by investing in both European Wax and First Ship 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 European Wax and First Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between European Wax Center and First Ship Lease, you can compare the effects of market volatilities on European Wax and First Ship 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 European Wax with a short position of First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Wax and First Ship.
Diversification Opportunities for European Wax and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between European and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding European Wax Center and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease and European Wax 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 European Wax Center are associated (or correlated) with First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of European Wax i.e., European Wax and First Ship go up and down completely randomly.
Pair Corralation between European Wax and First Ship
If you would invest 4.00 in First Ship Lease on September 2, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
European Wax Center vs. First Ship Lease
Performance |
| Timeline |
| European Wax Center |
| First Ship Lease |
European Wax and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Wax and First Ship
The main advantage of trading using opposite European Wax and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Wax position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.| European Wax vs. Edgewell Personal Care | European Wax vs. Inter Parfums | European Wax vs. Henkel AG Co | European Wax vs. Mannatech Incorporated |
| First Ship vs. Monster Beverage Corp | First Ship vs. SNDL Inc | First Ship vs. Hudson Pacific Properties | First Ship vs. Mativ Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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