Correlation Between Squirrel Media and Elaia Investment
Can any of the company-specific risk be diversified away by investing in both Squirrel Media and Elaia Investment 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 Squirrel Media and Elaia Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Elaia Investment Spain, you can compare the effects of market volatilities on Squirrel Media and Elaia Investment 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 Squirrel Media with a short position of Elaia Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Elaia Investment.
Diversification Opportunities for Squirrel Media and Elaia Investment
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Squirrel and Elaia is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and Elaia Investment Spain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elaia Investment Spain and Squirrel Media 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 Squirrel Media SA are associated (or correlated) with Elaia Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elaia Investment Spain has no effect on the direction of Squirrel Media i.e., Squirrel Media and Elaia Investment go up and down completely randomly.
Pair Corralation between Squirrel Media and Elaia Investment
Assuming the 90 days trading horizon Squirrel Media SA is expected to generate 0.68 times more return on investment than Elaia Investment. However, Squirrel Media SA is 1.46 times less risky than Elaia Investment. It trades about 0.08 of its potential returns per unit of risk. Elaia Investment Spain is currently generating about -0.16 per unit of risk. If you would invest 134.00 in Squirrel Media SA on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Squirrel Media SA or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Squirrel Media SA vs. Elaia Investment Spain
Performance |
| Timeline |
| Squirrel Media SA |
| Elaia Investment Spain |
Squirrel Media and Elaia Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Elaia Investment
The main advantage of trading using opposite Squirrel Media and Elaia Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media position performs unexpectedly, Elaia Investment 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 Elaia Investment will offset losses from the drop in Elaia Investment's long position.| Squirrel Media vs. International Consolidated Airlines | Squirrel Media vs. Millenium Hotels Real | Squirrel Media vs. Ebro Foods | Squirrel Media vs. Plasticos Compuestos SA |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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