Correlation Between Supermarket Income and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both Supermarket Income and Electronic Arts 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 Supermarket Income and Electronic Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supermarket Income REIT and Electronic Arts, you can compare the effects of market volatilities on Supermarket Income and Electronic Arts 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 Supermarket Income with a short position of Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermarket Income and Electronic Arts.
Diversification Opportunities for Supermarket Income and Electronic Arts
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Supermarket and Electronic is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Supermarket Income REIT and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts and Supermarket Income 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 Supermarket Income REIT are associated (or correlated) with Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Supermarket Income i.e., Supermarket Income and Electronic Arts go up and down completely randomly.
Pair Corralation between Supermarket Income and Electronic Arts
Assuming the 90 days trading horizon Supermarket Income is expected to generate 6.8 times less return on investment than Electronic Arts. In addition to that, Supermarket Income is 1.01 times more volatile than Electronic Arts. It trades about 0.03 of its total potential returns per unit of risk. Electronic Arts is currently generating about 0.18 per unit of volatility. If you would invest 15,895 in Electronic Arts on September 12, 2024 and sell it today you would earn a total of 524.00 from holding Electronic Arts or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Supermarket Income REIT vs. Electronic Arts
Performance |
| Timeline |
| Supermarket Income REIT |
| Electronic Arts |
Supermarket Income and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermarket Income and Electronic Arts
The main advantage of trading using opposite Supermarket Income and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermarket Income position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| Supermarket Income vs. Hammerson PLC | Supermarket Income vs. Neometals | Supermarket Income vs. Coor Service Management | Supermarket Income vs. Fidelity Sustainable USD |
| Electronic Arts vs. Hong Kong Land | Electronic Arts vs. Neometals | Electronic Arts vs. Coor Service Management | Electronic Arts vs. Fidelity Sustainable USD |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |