Correlation Between GiveMePower Corp and Eline Entertainment

Can any of the company-specific risk be diversified away by investing in both GiveMePower Corp and Eline Entertainment 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 GiveMePower Corp and Eline Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GiveMePower Corp and Eline Entertainment Group, you can compare the effects of market volatilities on GiveMePower Corp and Eline Entertainment 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 GiveMePower Corp with a short position of Eline Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GiveMePower Corp and Eline Entertainment.

Diversification Opportunities for GiveMePower Corp and Eline Entertainment

0.19

Correlation Coefficient

GiveMePower Corp  Eline Entertainment

Average diversification

The 3 months correlation between GiveMePower and Eline is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GiveMePower Corp and Eline Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eline Entertainment and GiveMePower Corp 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 GiveMePower Corp are associated (or correlated) with Eline Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eline Entertainment has no effect on the direction of GiveMePower Corp i.e., GiveMePower Corp and Eline Entertainment go up and down completely randomly.

Pair Corralation between GiveMePower Corp and Eline Entertainment

Given the investment horizon of 90 days GiveMePower Corp is expected to generate 1.02 times less return on investment than Eline Entertainment. But when comparing it to its historical volatility, GiveMePower Corp is 1.04 times less risky than Eline Entertainment. It trades about 0.09 of its potential returns per unit of risk. Eline Entertainment Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Eline Entertainment Group on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Eline Entertainment Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

GiveMePower Corp  vs.  Eline Entertainment Group

GiveMePower Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GiveMePower Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, GiveMePower Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Eline Entertainment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eline Entertainment Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical and fundamental indicators, Eline Entertainment demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GiveMePower Corp and Eline Entertainment

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

The idea behind GiveMePower Corp and Eline Entertainment Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.