Correlation Between EZFL Old and Life360, Common

Can any of the company-specific risk be diversified away by investing in both EZFL Old and Life360, Common 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 EZFL Old and Life360, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EZFL Old and Life360, Common Stock, you can compare the effects of market volatilities on EZFL Old and Life360, Common 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 EZFL Old with a short position of Life360, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZFL Old and Life360, Common.

Diversification Opportunities for EZFL Old and Life360, Common

0.23

Correlation Coefficient

EZFL Old  Life360, Common

Modest diversification

The 3 months correlation between EZFL and Life360, is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding EZFL Old and Life360, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life360, Common Stock and EZFL Old 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 EZFL Old are associated (or correlated) with Life360, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life360, Common Stock has no effect on the direction of EZFL Old i.e., EZFL Old and Life360, Common go up and down completely randomly.

Pair Corralation between EZFL Old and Life360, Common

Given the investment horizon of 90 days EZFL Old is expected to generate 2.34 times more return on investment than Life360, Common. However, EZFL Old is 2.34 times more volatile than Life360, Common Stock. It trades about 0.08 of its potential returns per unit of risk. Life360, Common Stock is currently generating about 0.01 per unit of risk. If you would invest  311.00  in EZFL Old on December 21, 2024 and sell it today you would earn a total of  39.00  from holding EZFL Old or generate 12.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	61.02%
Values	Daily Returns

EZFL Old  vs.  Life360, Common Stock

EZFL Old

Risk-Adjusted Performance

Modest

Over the last 90 days EZFL Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite conflicting technical and fundamental indicators, EZFL Old disclosed solid returns over the last few months and may actually be approaching a breakup point.

Life360, Common Stock

Risk-Adjusted Performance

Very Weak

Over the last 90 days Life360, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Life360, Common is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with EZFL Old and Life360, Common

The main advantage of trading using opposite EZFL Old and Life360, Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZFL Old position performs unexpectedly, Life360, Common 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 Life360, Common will offset losses from the drop in Life360, Common's long position.

The idea behind EZFL Old and Life360, Common Stock 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.