Correlation Between E Split and Mccoy Global

Can any of the company-specific risk be diversified away by investing in both E Split and Mccoy 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 E Split and Mccoy Global 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 Mccoy Global, you can compare the effects of market volatilities on E Split and Mccoy 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 E Split with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Split and Mccoy Global.

Diversification Opportunities for E Split and Mccoy Global

0.42

Correlation Coefficient

E Split  Mccoy Global

Very weak diversification

The 3 months correlation between ENS and Mccoy is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding E Split Corp and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global 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 Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of E Split i.e., E Split and Mccoy Global go up and down completely randomly.

Pair Corralation between E Split and Mccoy Global

Assuming the 90 days trading horizon E Split is expected to generate 4.79 times less return on investment than Mccoy Global. But when comparing it to its historical volatility, E Split Corp is 3.07 times less risky than Mccoy Global. It trades about 0.04 of its potential returns per unit of risk. Mccoy Global is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  281.00  in Mccoy Global on December 28, 2024 and sell it today you would earn a total of  33.00  from holding Mccoy Global or generate 11.74% return on investment over 90 days.

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

E Split Corp  vs.  Mccoy Global

E Split Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in E Split Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, E Split is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Mccoy Global

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mccoy Global are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Mccoy Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with E Split and Mccoy Global

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

The idea behind E Split Corp and Mccoy 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.