Correlation Between WGRO and EA Series
Can any of the company-specific risk be diversified away by investing in both WGRO and EA Series 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 WGRO and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WGRO and EA Series Trust, you can compare the effects of market volatilities on WGRO and EA Series 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 WGRO with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of WGRO and EA Series.
Diversification Opportunities for WGRO and EA Series
Poor diversification
The 3 months correlation between WGRO and STXG is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding WGRO and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and WGRO 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 WGRO are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of WGRO i.e., WGRO and EA Series go up and down completely randomly.
Pair Corralation between WGRO and EA Series
If you would invest 4,229 in EA Series Trust on August 31, 2024 and sell it today you would earn a total of 171.00 from holding EA Series Trust or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
WGRO vs. EA Series Trust
Performance |
| Timeline |
| WGRO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EA Series Trust |
WGRO and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WGRO and EA Series
The main advantage of trading using opposite WGRO and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WGRO position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| WGRO vs. iShares Small Cap | WGRO vs. Virtus ETF Trust | WGRO vs. Amplify Thematic All Stars | WGRO vs. ProShares Nasdaq 100 Dorsey |
| EA Series vs. Vanguard Growth Index | EA Series vs. iShares Russell 1000 | EA Series vs. iShares SP 500 | EA Series vs. iShares Core SP |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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