Correlation Between Ball and Ehouse Global

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

By analyzing existing cross correlation between Ball Corporation and Ehouse Global, you can compare the effects of market volatilities on Ball and Ehouse Global 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 Ball with a short position of Ehouse Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ball and Ehouse Global.

Diversification Opportunities for Ball and Ehouse Global

0.0

Correlation Coefficient

Ball  Ehouse Global

Pay attention - limited upside

The 3 months correlation between Ball and Ehouse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ball Corp. and Ehouse Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehouse Global and Ball 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 Ball Corporation are associated (or correlated) with Ehouse Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ehouse Global has no effect on the direction of Ball i.e., Ball and Ehouse Global go up and down completely randomly.

Pair Corralation between Ball and Ehouse Global

If you would invest  0.00  in Ehouse Global on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Ehouse Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.0%
Values	Daily Returns

Ball Corp.  vs.  Ehouse Global

Ball

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ball Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Ehouse Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ehouse Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ehouse Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ball and Ehouse Global

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

The idea behind Ball Corporation and Ehouse Global 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 Transaction History module to view history of all your transactions and understand their impact on performance.