Correlation Between Eros STX and Global Eagle
Can any of the company-specific risk be diversified away by investing in both Eros STX and Global Eagle 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 Eros STX and Global Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eros STX Global and Global Eagle Entertainment, you can compare the effects of market volatilities on Eros STX and Global Eagle 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 Eros STX with a short position of Global Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros STX and Global Eagle.
Diversification Opportunities for Eros STX and Global Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eros and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eros STX Global and Global Eagle Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Eagle Enterta and Eros STX 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 Eros STX Global are associated (or correlated) with Global Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Eagle Enterta has no effect on the direction of Eros STX i.e., Eros STX and Global Eagle go up and down completely randomly.
Pair Corralation between Eros STX and Global Eagle
If you would invest (100.00) in Global Eagle Entertainment on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Global Eagle Entertainment or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eros STX Global vs. Global Eagle Entertainment
Performance |
| Timeline |
| Eros STX Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Eagle Enterta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eros STX and Global Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros STX and Global Eagle
The main advantage of trading using opposite Eros STX and Global Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros STX position performs unexpectedly, Global Eagle 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 Global Eagle will offset losses from the drop in Global Eagle's long position.| Eros STX vs. Old Dominion Freight | Eros STX vs. Yuexiu Transport Infrastructure | Eros STX vs. Avarone Metals | Eros STX vs. Eldorado Gold Corp |
| Global Eagle vs. 24SevenOffice Group AB | Global Eagle vs. Ambev SA ADR | Global Eagle vs. Merit Medical Systems | Global Eagle vs. Keurig Dr Pepper |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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