Correlation Between AS Tallink and American Eagle
Can any of the company-specific risk be diversified away by investing in both AS Tallink and American Eagle 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 AS Tallink and American Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AS Tallink Grupp and American Eagle Outfitters, you can compare the effects of market volatilities on AS Tallink and American Eagle 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 AS Tallink with a short position of American Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of AS Tallink and American Eagle.
Diversification Opportunities for AS Tallink and American Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between T5N and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AS Tallink Grupp and American Eagle Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Eagle Outfitters and AS Tallink 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 AS Tallink Grupp are associated (or correlated) with American Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Eagle Outfitters has no effect on the direction of AS Tallink i.e., AS Tallink and American Eagle go up and down completely randomly.
Pair Corralation between AS Tallink and American Eagle
If you would invest 1,798 in American Eagle Outfitters on August 28, 2024 and sell it today you would lose (118.00) from holding American Eagle Outfitters or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.47% |
| Values | Daily Returns |
AS Tallink Grupp vs. American Eagle Outfitters
Performance |
| Timeline |
| AS Tallink Grupp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| American Eagle Outfitters |
AS Tallink and American Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AS Tallink and American Eagle
The main advantage of trading using opposite AS Tallink and American Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AS Tallink position performs unexpectedly, American Eagle 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 American Eagle will offset losses from the drop in American Eagle's long position.| AS Tallink vs. Amkor Technology | AS Tallink vs. FUYO GENERAL LEASE | AS Tallink vs. RCM TECHNOLOGIES | AS Tallink vs. Playtech plc |
| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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