Correlation Between EHi Car and Target
Can any of the company-specific risk be diversified away by investing in both EHi Car and Target 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 EHi Car and Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHi Car Services and Target, you can compare the effects of market volatilities on EHi Car and Target 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 EHi Car with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHi Car and Target.
Diversification Opportunities for EHi Car and Target
Pay attention - limited upside
The 3 months correlation between EHi and Target is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EHi Car Services and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target and EHi Car 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 EHi Car Services are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of EHi Car i.e., EHi Car and Target go up and down completely randomly.
Pair Corralation between EHi Car and Target
If you would invest (100.00) in EHi Car Services on January 24, 2024 and sell it today you would earn a total of 100.00 from holding EHi Car Services 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 |
EHi Car Services vs. Target
Performance |
| Timeline |
| EHi Car Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Target |
EHi Car and Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHi Car and Target
The main advantage of trading using opposite EHi Car and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHi Car position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.| EHi Car vs. Jacobs Solutions | EHi Car vs. Papaya Growth Opportunity | EHi Car vs. Sphere Entertainment Co | EHi Car vs. Electrovaya Common Shares |
| Target vs. Big Lots | Target vs. Aquagold International | Target vs. Thrivent High Yield | Target vs. Morningstar Unconstrained Allocation |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |