Correlation Between Centene Corp and Eros STX
Can any of the company-specific risk be diversified away by investing in both Centene Corp and Eros STX 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 Centene Corp and Eros STX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centene Corp and Eros STX Global, you can compare the effects of market volatilities on Centene Corp and Eros STX 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 Centene Corp with a short position of Eros STX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centene Corp and Eros STX.
Diversification Opportunities for Centene Corp and Eros STX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centene and Eros is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Centene Corp and Eros STX Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros STX Global and Centene 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 Centene Corp are associated (or correlated) with Eros STX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros STX Global has no effect on the direction of Centene Corp i.e., Centene Corp and Eros STX go up and down completely randomly.
Pair Corralation between Centene Corp and Eros STX
If you would invest (100.00) in Eros STX Global on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Eros STX Global or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Centene Corp vs. Eros STX Global
Performance |
| Timeline |
| Centene Corp |
| Eros STX Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Centene Corp and Eros STX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centene Corp and Eros STX
The main advantage of trading using opposite Centene Corp and Eros STX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centene Corp position performs unexpectedly, Eros STX 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 Eros STX will offset losses from the drop in Eros STX's long position.| Centene Corp vs. Humana Inc | Centene Corp vs. CVS Health Corp | Centene Corp vs. Alignment Healthcare LLC |
| Eros STX vs. Asure Software | Eros STX vs. Orbit Garant Drilling | Eros STX vs. Precision Drilling | Eros STX vs. Western Digital |
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 CEOs Directory module to screen CEOs from public companies around the world.
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