Correlation Between DAEA TI and EASY HOLDINGS

Can any of the company-specific risk be diversified away by investing in both DAEA TI and EASY HOLDINGS 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 DAEA TI and EASY HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DAEA TI Co and EASY HOLDINGS Co, you can compare the effects of market volatilities on DAEA TI and EASY HOLDINGS 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 DAEA TI with a short position of EASY HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEA TI and EASY HOLDINGS.

Diversification Opportunities for DAEA TI and EASY HOLDINGS

-0.23

Correlation Coefficient

DAEA TI  EASY HOLDINGS

Very good diversification

The 3 months correlation between DAEA and EASY is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding DAEA TI Co and EASY HOLDINGS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EASY HOLDINGS and DAEA TI 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 DAEA TI Co are associated (or correlated) with EASY HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EASY HOLDINGS has no effect on the direction of DAEA TI i.e., DAEA TI and EASY HOLDINGS go up and down completely randomly.

Pair Corralation between DAEA TI and EASY HOLDINGS

Assuming the 90 days trading horizon DAEA TI is expected to generate 1.44 times less return on investment than EASY HOLDINGS. In addition to that, DAEA TI is 1.37 times more volatile than EASY HOLDINGS Co. It trades about 0.05 of its total potential returns per unit of risk. EASY HOLDINGS Co is currently generating about 0.1 per unit of volatility. If you would invest  275,500  in EASY HOLDINGS Co on December 28, 2024 and sell it today you would earn a total of  20,500  from holding EASY HOLDINGS Co or generate 7.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DAEA TI Co  vs.  EASY HOLDINGS Co

DAEA TI

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DAEA TI Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, DAEA TI is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

EASY HOLDINGS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EASY HOLDINGS Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, EASY HOLDINGS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with DAEA TI and EASY HOLDINGS

The main advantage of trading using opposite DAEA TI and EASY HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEA TI position performs unexpectedly, EASY HOLDINGS 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 EASY HOLDINGS will offset losses from the drop in EASY HOLDINGS's long position.

The idea behind DAEA TI Co and EASY HOLDINGS Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.