Correlation Between Ebet and Retailing Fund

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

By analyzing existing cross correlation between Ebet Inc and Retailing Fund Class, you can compare the effects of market volatilities on Ebet and Retailing Fund 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 Ebet with a short position of Retailing Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebet and Retailing Fund.

Diversification Opportunities for Ebet and Retailing Fund

-0.56

Correlation Coefficient

Ebet  Retailing Fund

Excellent diversification

The 3 months correlation between Ebet and Retailing is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ebet Inc and Retailing Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailing Fund Class and Ebet 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 Ebet Inc are associated (or correlated) with Retailing Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailing Fund Class has no effect on the direction of Ebet i.e., Ebet and Retailing Fund go up and down completely randomly.

Pair Corralation between Ebet and Retailing Fund

Given the investment horizon of 90 days Ebet Inc is expected to under-perform the Retailing Fund. In addition to that, Ebet is 5.25 times more volatile than Retailing Fund Class. It trades about -0.33 of its total potential returns per unit of risk. Retailing Fund Class is currently generating about 0.04 per unit of volatility. If you would invest  3,653  in Retailing Fund Class on October 24, 2024 and sell it today you would earn a total of  657.00  from holding Retailing Fund Class or generate 17.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	24.09%
Values	Daily Returns

Ebet Inc  vs.  Retailing Fund Class

Ebet Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Retailing Fund Class

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Retailing Fund Class are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Retailing Fund may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Ebet and Retailing Fund

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

The idea behind Ebet Inc and Retailing Fund Class 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.