Correlation Between 70082LAB3 and Great Elm
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By analyzing existing cross correlation between US70082LAB36 and Great Elm Capital, you can compare the effects of market volatilities on 70082LAB3 and Great Elm 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 70082LAB3 with a short position of Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70082LAB3 and Great Elm.
Diversification Opportunities for 70082LAB3 and Great Elm
Very weak diversification
The 3 months correlation between 70082LAB3 and Great is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding US70082LAB36 and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital and 70082LAB3 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 US70082LAB36 are associated (or correlated) with Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of 70082LAB3 i.e., 70082LAB3 and Great Elm go up and down completely randomly.
Pair Corralation between 70082LAB3 and Great Elm
Assuming the 90 days trading horizon US70082LAB36 is expected to under-perform the Great Elm. In addition to that, 70082LAB3 is 7.55 times more volatile than Great Elm Capital. It trades about -0.21 of its total potential returns per unit of risk. Great Elm Capital is currently generating about -0.1 per unit of volatility. If you would invest 2,492 in Great Elm Capital on September 2, 2024 and sell it today you would lose (11.00) from holding Great Elm Capital or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
US70082LAB36 vs. Great Elm Capital
Performance |
| Timeline |
| US70082LAB36 |
| Great Elm Capital |
70082LAB3 and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 70082LAB3 and Great Elm
The main advantage of trading using opposite 70082LAB3 and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70082LAB3 position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| 70082LAB3 vs. 51Talk Online Education | 70082LAB3 vs. Deluxe | 70082LAB3 vs. Barrick Gold Corp | 70082LAB3 vs. National CineMedia |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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