Correlation Between E Split and Flaherty Crumrine

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

By analyzing existing cross correlation between E Split Corp and Flaherty Crumrine Investment, you can compare the effects of market volatilities on E Split and Flaherty Crumrine 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 E Split with a short position of Flaherty Crumrine. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Split and Flaherty Crumrine.

Diversification Opportunities for E Split and Flaherty Crumrine

0.0

Correlation Coefficient

E Split  Flaherty Crumrine

Pay attention - limited upside

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

Pair Corralation between E Split and Flaherty Crumrine

If you would invest  1,333  in E Split Corp on October 8, 2024 and sell it today you would earn a total of  85.00  from holding E Split Corp or generate 6.38% return on investment over 90 days.

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

E Split Corp  vs.  Flaherty Crumrine Investment

E Split Corp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in E Split Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, E Split displayed solid returns over the last few months and may actually be approaching a breakup point.

Flaherty Crumrine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flaherty Crumrine Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Flaherty Crumrine is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with E Split and Flaherty Crumrine

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

The idea behind E Split Corp and Flaherty Crumrine Investment 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.