Correlation Between Akros Monthly and EA Series

Can any of the company-specific risk be diversified away by investing in both Akros Monthly and EA Series 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 Akros Monthly and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Akros Monthly Payout and EA Series Trust, you can compare the effects of market volatilities on Akros Monthly and EA Series 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 Akros Monthly with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akros Monthly and EA Series.

Diversification Opportunities for Akros Monthly and EA Series

0.73

Correlation Coefficient

Akros Monthly  EA Series

Poor diversification

The 3 months correlation between Akros and DRAI is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Akros Monthly Payout and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and Akros Monthly 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 Akros Monthly Payout are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Akros Monthly i.e., Akros Monthly and EA Series go up and down completely randomly.

Pair Corralation between Akros Monthly and EA Series

Given the investment horizon of 90 days Akros Monthly Payout is expected to generate 0.63 times more return on investment than EA Series. However, Akros Monthly Payout is 1.59 times less risky than EA Series. It trades about 0.15 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.09 per unit of risk. If you would invest  2,464  in Akros Monthly Payout on September 4, 2024 and sell it today you would earn a total of  139.00  from holding Akros Monthly Payout or generate 5.64% return on investment over 90 days.

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

Akros Monthly Payout  vs.  EA Series Trust

Akros Monthly Payout

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Akros Monthly Payout are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Akros Monthly is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

EA Series Trust

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EA Series Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, EA Series is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Akros Monthly and EA Series

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

The idea behind Akros Monthly Payout and EA Series Trust 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.