Correlation Between Eco Atlantic and Boardwalk Real

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

By analyzing existing cross correlation between Eco Atlantic Oil and Boardwalk Real Estate, you can compare the effects of market volatilities on Eco Atlantic and Boardwalk Real 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 Eco Atlantic with a short position of Boardwalk Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eco Atlantic and Boardwalk Real.

Diversification Opportunities for Eco Atlantic and Boardwalk Real

-0.83

Correlation Coefficient

Eco Atlantic  Boardwalk Real

Pay attention - limited upside

The 3 months correlation between Eco and Boardwalk is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Eco Atlantic Oil and Boardwalk Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boardwalk Real Estate and Eco Atlantic 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 Eco Atlantic Oil are associated (or correlated) with Boardwalk Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boardwalk Real Estate has no effect on the direction of Eco Atlantic i.e., Eco Atlantic and Boardwalk Real go up and down completely randomly.

Pair Corralation between Eco Atlantic and Boardwalk Real

Assuming the 90 days horizon Eco Atlantic Oil is expected to under-perform the Boardwalk Real. In addition to that, Eco Atlantic is 2.86 times more volatile than Boardwalk Real Estate. It trades about -0.06 of its total potential returns per unit of risk. Boardwalk Real Estate is currently generating about 0.07 per unit of volatility. If you would invest  6,294  in Boardwalk Real Estate on December 30, 2024 and sell it today you would earn a total of  310.00  from holding Boardwalk Real Estate or generate 4.93% return on investment over 90 days.

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

Eco Atlantic Oil  vs.  Boardwalk Real Estate

Eco Atlantic Oil

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eco Atlantic Oil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Boardwalk Real Estate

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Boardwalk Real Estate are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, Boardwalk Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eco Atlantic and Boardwalk Real

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

The idea behind Eco Atlantic Oil and Boardwalk Real Estate 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.