Correlation Between Northern Lights and EGPT
Can any of the company-specific risk be diversified away by investing in both Northern Lights and EGPT 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 Northern Lights and EGPT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Lights and EGPT, you can compare the effects of market volatilities on Northern Lights and EGPT 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 Northern Lights with a short position of EGPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Lights and EGPT.
Diversification Opportunities for Northern Lights and EGPT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and EGPT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Lights and EGPT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGPT and Northern Lights 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 Northern Lights are associated (or correlated) with EGPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGPT has no effect on the direction of Northern Lights i.e., Northern Lights and EGPT go up and down completely randomly.
Pair Corralation between Northern Lights and EGPT
If you would invest 3,579 in Northern Lights on November 28, 2024 and sell it today you would earn a total of 6.00 from holding Northern Lights or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Northern Lights vs. EGPT
Performance |
| Timeline |
| Northern Lights |
| EGPT |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Northern Lights and EGPT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Lights and EGPT
The main advantage of trading using opposite Northern Lights and EGPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Lights position performs unexpectedly, EGPT 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 EGPT will offset losses from the drop in EGPT's long position.| Northern Lights vs. Sterling Capital Focus | Northern Lights vs. Northern Lights | Northern Lights vs. First Trust Exchange Traded | Northern Lights vs. Northern Lights |
| EGPT vs. VanEck Africa Index | EGPT vs. Global X MSCI | EGPT vs. iShares MSCI Philippines | EGPT vs. iShares MSCI Peru |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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