Correlation Between Adobe and East Africa
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By analyzing existing cross correlation between Adobe 23 percent and East Africa Metals, you can compare the effects of market volatilities on Adobe and East Africa 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 Adobe with a short position of East Africa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adobe and East Africa.
Diversification Opportunities for Adobe and East Africa
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adobe and East is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Adobe 23 percent and East Africa Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Africa Metals and Adobe 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 Adobe 23 percent are associated (or correlated) with East Africa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Africa Metals has no effect on the direction of Adobe i.e., Adobe and East Africa go up and down completely randomly.
Pair Corralation between Adobe and East Africa
Assuming the 90 days trading horizon Adobe is expected to generate 181.9 times less return on investment than East Africa. But when comparing it to its historical volatility, Adobe 23 percent is 39.63 times less risky than East Africa. It trades about 0.01 of its potential returns per unit of risk. East Africa Metals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5.20 in East Africa Metals on September 3, 2024 and sell it today you would earn a total of 5.80 from holding East Africa Metals or generate 111.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Adobe 23 percent vs. East Africa Metals
Performance |
| Timeline |
| Adobe 23 percent |
| East Africa Metals |
Adobe and East Africa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adobe and East Africa
The main advantage of trading using opposite Adobe and East Africa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adobe position performs unexpectedly, East Africa 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 East Africa will offset losses from the drop in East Africa's long position.| Adobe vs. AEP TEX INC | Adobe vs. US BANK NATIONAL | Adobe vs. Jackson Financial | Adobe vs. Brera Holdings PLC |
| East Africa vs. Pasinex Resources Limited | East Africa vs. Commander Resources | East Africa vs. Forsys Metals Corp | East Africa vs. American CuMo Mining |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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