Correlation Between Chocoladefabriken and Eagle Eye
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Eagle Eye 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 Chocoladefabriken and Eagle Eye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and Eagle Eye Solutions, you can compare the effects of market volatilities on Chocoladefabriken and Eagle Eye 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 Chocoladefabriken with a short position of Eagle Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Eagle Eye.
Diversification Opportunities for Chocoladefabriken and Eagle Eye
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chocoladefabriken and Eagle is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Eagle Eye Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Eye Solutions and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with Eagle Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Eye Solutions has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Eagle Eye go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Eagle Eye
Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to under-perform the Eagle Eye. But the stock apears to be less risky and, when comparing its historical volatility, Chocoladefabriken Lindt Spruengli is 1.05 times less risky than Eagle Eye. The stock trades about -0.18 of its potential returns per unit of risk. The Eagle Eye Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47,200 in Eagle Eye Solutions on September 22, 2024 and sell it today you would earn a total of 1,300 from holding Eagle Eye Solutions or generate 2.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.48% |
Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. Eagle Eye Solutions
Performance |
Timeline |
Chocoladefabriken Lindt |
Eagle Eye Solutions |
Chocoladefabriken and Eagle Eye Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chocoladefabriken and Eagle Eye
The main advantage of trading using opposite Chocoladefabriken and Eagle Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Eagle Eye 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 Eagle Eye will offset losses from the drop in Eagle Eye's long position.Chocoladefabriken vs. Uniper SE | Chocoladefabriken vs. Mulberry Group PLC | Chocoladefabriken vs. London Security Plc | Chocoladefabriken vs. Triad Group PLC |
Eagle Eye vs. Berkshire Hathaway | Eagle Eye vs. Chocoladefabriken Lindt Spruengli | Eagle Eye vs. Rockwood Realisation PLC | Eagle Eye vs. Toyota Motor Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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