Correlation Between Exeo Entertainment and BlackBerry

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

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

Diversification Opportunities for Exeo Entertainment and BlackBerry

0.06

Correlation Coefficient

Exeo Entertainment  BlackBerry

Significant diversification

The 3 months correlation between Exeo and BlackBerry is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Exeo Entertainment and BlackBerry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackBerry and Exeo Entertainment 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 Exeo Entertainment are associated (or correlated) with BlackBerry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackBerry has no effect on the direction of Exeo Entertainment i.e., Exeo Entertainment and BlackBerry go up and down completely randomly.

Pair Corralation between Exeo Entertainment and BlackBerry

If you would invest  281.00  in BlackBerry on February 3, 2024 and sell it today you would earn a total of  11.00  from holding BlackBerry or generate 3.91% return on investment over 90 days.

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

Exeo Entertainment  vs.  BlackBerry

Exeo Entertainment

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exeo Entertainment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Exeo Entertainment displayed solid returns over the last few months and may actually be approaching a breakup point.

BlackBerry

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BlackBerry are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, BlackBerry sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exeo Entertainment and BlackBerry

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

The idea behind Exeo Entertainment and BlackBerry 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.