Correlation Between TransAKT and Eline Entertainment
Can any of the company-specific risk be diversified away by investing in both TransAKT and Eline Entertainment 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 TransAKT and Eline Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransAKT and Eline Entertainment Group, you can compare the effects of market volatilities on TransAKT and Eline Entertainment 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 TransAKT with a short position of Eline Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransAKT and Eline Entertainment.
Diversification Opportunities for TransAKT and Eline Entertainment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TransAKT and Eline is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding TransAKT and Eline Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eline Entertainment and TransAKT 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 TransAKT are associated (or correlated) with Eline Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eline Entertainment has no effect on the direction of TransAKT i.e., TransAKT and Eline Entertainment go up and down completely randomly.
Pair Corralation between TransAKT and Eline Entertainment
Given the investment horizon of 90 days TransAKT is expected to generate 3.84 times more return on investment than Eline Entertainment. However, TransAKT is 3.84 times more volatile than Eline Entertainment Group. It trades about 0.22 of its potential returns per unit of risk. Eline Entertainment Group is currently generating about 0.18 per unit of risk. If you would invest 0.17 in TransAKT on August 29, 2024 and sell it today you would earn a total of 2.60 from holding TransAKT or generate 1529.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TransAKT vs. Eline Entertainment Group
Performance |
| Timeline |
| TransAKT |
| Eline Entertainment |
TransAKT and Eline Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TransAKT and Eline Entertainment
The main advantage of trading using opposite TransAKT and Eline Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransAKT position performs unexpectedly, Eline Entertainment 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 Eline Entertainment will offset losses from the drop in Eline Entertainment's long position.| TransAKT vs. Deere Company | TransAKT vs. Columbus McKinnon | TransAKT vs. Hyster Yale Materials Handling | TransAKT vs. Manitowoc |
| Eline Entertainment vs. Icon Media Holdings | Eline Entertainment vs. Green Leaf Innovations | Eline Entertainment vs. Plandai Biotech | Eline Entertainment vs. All American Gld |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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