Correlation Between EZCORP and Consumer Portfolio
Can any of the company-specific risk be diversified away by investing in both EZCORP and Consumer Portfolio 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 EZCORP and Consumer Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EZCORP Inc and Consumer Portfolio Services, you can compare the effects of market volatilities on EZCORP and Consumer Portfolio 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 EZCORP with a short position of Consumer Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZCORP and Consumer Portfolio.
Diversification Opportunities for EZCORP and Consumer Portfolio
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between EZCORP and Consumer is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding EZCORP Inc and Consumer Portfolio Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Portfolio and EZCORP 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 EZCORP Inc are associated (or correlated) with Consumer Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Portfolio has no effect on the direction of EZCORP i.e., EZCORP and Consumer Portfolio go up and down completely randomly.
Pair Corralation between EZCORP and Consumer Portfolio
Given the investment horizon of 90 days EZCORP Inc is expected to generate 0.5 times more return on investment than Consumer Portfolio. However, EZCORP Inc is 2.01 times less risky than Consumer Portfolio. It trades about 0.23 of its potential returns per unit of risk. Consumer Portfolio Services is currently generating about 0.11 per unit of risk. If you would invest 1,187 in EZCORP Inc on August 28, 2024 and sell it today you would earn a total of 75.00 from holding EZCORP Inc or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
EZCORP Inc vs. Consumer Portfolio Services
Performance |
| Timeline |
| EZCORP Inc |
| Consumer Portfolio |
EZCORP and Consumer Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EZCORP and Consumer Portfolio
The main advantage of trading using opposite EZCORP and Consumer Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZCORP position performs unexpectedly, Consumer Portfolio 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 Consumer Portfolio will offset losses from the drop in Consumer Portfolio's long position.| EZCORP vs. Orix Corp Ads | EZCORP vs. Medallion Financial Corp | EZCORP vs. Oportun Financial Corp | EZCORP vs. SLM Corp Pb |
| Consumer Portfolio vs. Atlanticus Holdings Corp | Consumer Portfolio vs. Mill City Ventures | Consumer Portfolio vs. Nelnet Inc | Consumer Portfolio vs. Senmiao Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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