Correlation Between EA Series and EA Series
Can any of the company-specific risk be diversified away by investing in both EA Series and EA Series 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 EA Series and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and EA Series Trust, you can compare the effects of market volatilities on EA Series and EA Series 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 EA Series with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and EA Series.
Diversification Opportunities for EA Series and EA Series
Very weak diversification
The 3 months correlation between STXD and STXG is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and EA Series 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 EA Series Trust are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of EA Series i.e., EA Series and EA Series go up and down completely randomly.
Pair Corralation between EA Series and EA Series
Given the investment horizon of 90 days EA Series is expected to generate 1.88 times less return on investment than EA Series. But when comparing it to its historical volatility, EA Series Trust is 1.2 times less risky than EA Series. It trades about 0.08 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,506 in EA Series Trust on August 28, 2024 and sell it today you would earn a total of 1,859 from holding EA Series Trust or generate 74.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Series Trust vs. EA Series Trust
Performance |
| Timeline |
| EA Series Trust |
| EA Series Trust |
EA Series and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and EA Series
The main advantage of trading using opposite EA Series and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| EA Series vs. Morningstar Unconstrained Allocation | EA Series vs. High Yield Municipal Fund | EA Series vs. Via Renewables | EA Series vs. Knife River |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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