Correlation Between Intuitive Investments and EasyJet PLC
Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and EasyJet PLC 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 Intuitive Investments and EasyJet PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Investments Group and EasyJet PLC, you can compare the effects of market volatilities on Intuitive Investments and EasyJet PLC 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 Intuitive Investments with a short position of EasyJet PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and EasyJet PLC.
Diversification Opportunities for Intuitive Investments and EasyJet PLC
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and EasyJet is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and EasyJet PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EasyJet PLC and Intuitive Investments 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 Intuitive Investments Group are associated (or correlated) with EasyJet PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EasyJet PLC has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and EasyJet PLC go up and down completely randomly.
Pair Corralation between Intuitive Investments and EasyJet PLC
Assuming the 90 days trading horizon Intuitive Investments Group is expected to generate 3.78 times more return on investment than EasyJet PLC. However, Intuitive Investments is 3.78 times more volatile than EasyJet PLC. It trades about 0.03 of its potential returns per unit of risk. EasyJet PLC is currently generating about -0.5 per unit of risk. If you would invest 12,450 in Intuitive Investments Group on October 12, 2024 and sell it today you would earn a total of 150.00 from holding Intuitive Investments Group or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Investments Group vs. EasyJet PLC
Performance |
| Timeline |
| Intuitive Investments |
| EasyJet PLC |
Intuitive Investments and EasyJet PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Investments and EasyJet PLC
The main advantage of trading using opposite Intuitive Investments and EasyJet PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, EasyJet PLC 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 EasyJet PLC will offset losses from the drop in EasyJet PLC's long position.| Intuitive Investments vs. Zegona Communications Plc | Intuitive Investments vs. First Class Metals | Intuitive Investments vs. Fonix Mobile plc | Intuitive Investments vs. Aeorema Communications Plc |
| EasyJet PLC vs. Cornish Metals | EasyJet PLC vs. Applied Materials | EasyJet PLC vs. Travel Leisure Co | EasyJet PLC vs. Capital Metals PLC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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