Correlation Between Hour Loop and Newegg Commerce
Can any of the company-specific risk be diversified away by investing in both Hour Loop and Newegg Commerce 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 Hour Loop and Newegg Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hour Loop and Newegg Commerce, you can compare the effects of market volatilities on Hour Loop and Newegg Commerce 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 Hour Loop with a short position of Newegg Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hour Loop and Newegg Commerce.
Diversification Opportunities for Hour Loop and Newegg Commerce
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hour and Newegg is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hour Loop and Newegg Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newegg Commerce and Hour Loop 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 Hour Loop are associated (or correlated) with Newegg Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newegg Commerce has no effect on the direction of Hour Loop i.e., Hour Loop and Newegg Commerce go up and down completely randomly.
Pair Corralation between Hour Loop and Newegg Commerce
Given the investment horizon of 90 days Hour Loop is expected to generate 0.77 times more return on investment than Newegg Commerce. However, Hour Loop is 1.31 times less risky than Newegg Commerce. It trades about 0.02 of its potential returns per unit of risk. Newegg Commerce is currently generating about 0.0 per unit of risk. If you would invest 164.00 in Hour Loop on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Hour Loop or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hour Loop vs. Newegg Commerce
Performance |
| Timeline |
| Hour Loop |
| Newegg Commerce |
Hour Loop and Newegg Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hour Loop and Newegg Commerce
The main advantage of trading using opposite Hour Loop and Newegg Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hour Loop position performs unexpectedly, Newegg Commerce 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 Newegg Commerce will offset losses from the drop in Newegg Commerce's long position.| Hour Loop vs. Qurate Retail Series | Hour Loop vs. iPower Inc | Hour Loop vs. MOGU Inc | Hour Loop vs. Qurate Retail |
| Newegg Commerce vs. Hour Loop | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. MOGU Inc | Newegg Commerce vs. Jowell Global |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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