Correlation Between Eip Growth and Ancora/thelen Small-mid

Can any of the company-specific risk be diversified away by investing in both Eip Growth and Ancora/thelen Small-mid 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 Eip Growth and Ancora/thelen Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eip Growth And and Ancorathelen Small Mid Cap, you can compare the effects of market volatilities on Eip Growth and Ancora/thelen Small-mid 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 Eip Growth with a short position of Ancora/thelen Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eip Growth and Ancora/thelen Small-mid.

Diversification Opportunities for Eip Growth and Ancora/thelen Small-mid

0.94

Correlation Coefficient

Eip Growth  Ancora/thelen Small-mid

Almost no diversification

The 3 months correlation between Eip and Ancora/thelen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Eip Growth And and Ancorathelen Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancora/thelen Small-mid and Eip Growth 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 Eip Growth And are associated (or correlated) with Ancora/thelen Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancora/thelen Small-mid has no effect on the direction of Eip Growth i.e., Eip Growth and Ancora/thelen Small-mid go up and down completely randomly.

Pair Corralation between Eip Growth and Ancora/thelen Small-mid

Assuming the 90 days horizon Eip Growth And is expected to generate 0.68 times more return on investment than Ancora/thelen Small-mid. However, Eip Growth And is 1.47 times less risky than Ancora/thelen Small-mid. It trades about 0.26 of its potential returns per unit of risk. Ancorathelen Small Mid Cap is currently generating about 0.17 per unit of risk. If you would invest  1,766  in Eip Growth And on August 30, 2024 and sell it today you would earn a total of  228.00  from holding Eip Growth And or generate 12.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Eip Growth And  vs.  Ancorathelen Small Mid Cap

Eip Growth And

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eip Growth And are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Eip Growth may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Ancora/thelen Small-mid

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ancorathelen Small Mid Cap are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ancora/thelen Small-mid may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Eip Growth and Ancora/thelen Small-mid

The main advantage of trading using opposite Eip Growth and Ancora/thelen Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eip Growth position performs unexpectedly, Ancora/thelen Small-mid 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 Ancora/thelen Small-mid will offset losses from the drop in Ancora/thelen Small-mid's long position.

The idea behind Eip Growth And and Ancorathelen Small Mid Cap 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.