Correlation Between Remitly Global and East West
Can any of the company-specific risk be diversified away by investing in both Remitly Global and East West 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 Remitly Global and East West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remitly Global and East West Petroleum, you can compare the effects of market volatilities on Remitly Global and East West 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 Remitly Global with a short position of East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remitly Global and East West.
Diversification Opportunities for Remitly Global and East West
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Remitly and East is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Remitly Global and East West Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Petroleum and Remitly Global 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 Remitly Global are associated (or correlated) with East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Petroleum has no effect on the direction of Remitly Global i.e., Remitly Global and East West go up and down completely randomly.
Pair Corralation between Remitly Global and East West
Given the investment horizon of 90 days Remitly Global is expected to generate 54.33 times less return on investment than East West. But when comparing it to its historical volatility, Remitly Global is 15.99 times less risky than East West. It trades about 0.06 of its potential returns per unit of risk. East West Petroleum is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6.00 in East West Petroleum on September 28, 2024 and sell it today you would lose (3.00) from holding East West Petroleum or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Remitly Global vs. East West Petroleum
Performance |
| Timeline |
| Remitly Global |
| East West Petroleum |
Remitly Global and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remitly Global and East West
The main advantage of trading using opposite Remitly Global and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remitly Global position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Remitly Global vs. ACI Worldwide | Remitly Global vs. EverCommerce | Remitly Global vs. Global Blue Group | Remitly Global vs. CSG Systems International |
| East West vs. Valeura Energy | East West vs. Invictus Energy Limited | East West vs. ConnectOne Bancorp | East West vs. RCM Technologies |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |