Correlation Between OFFICE DEPOT and CEVA
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and CEVA 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 OFFICE DEPOT and CEVA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and CEVA Inc, you can compare the effects of market volatilities on OFFICE DEPOT and CEVA 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 OFFICE DEPOT with a short position of CEVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and CEVA.
Diversification Opportunities for OFFICE DEPOT and CEVA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and CEVA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and CEVA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEVA Inc and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with CEVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEVA Inc has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and CEVA go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and CEVA
If you would invest 2,431 in CEVA Inc on September 14, 2024 and sell it today you would earn a total of 629.00 from holding CEVA Inc or generate 25.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
OFFICE DEPOT vs. CEVA Inc
Performance |
| Timeline |
| OFFICE DEPOT |
| CEVA Inc |
OFFICE DEPOT and CEVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and CEVA
The main advantage of trading using opposite OFFICE DEPOT and CEVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, CEVA 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 CEVA will offset losses from the drop in CEVA's long position.| OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc |
| CEVA vs. ALERION CLEANPOWER | CEVA vs. AM EAGLE OUTFITTERS | CEVA vs. SALESFORCE INC CDR | CEVA vs. RYU Apparel |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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