Correlation Between Global Eagle and Dolphin Entertainment

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

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

Diversification Opportunities for Global Eagle and Dolphin Entertainment

0.0

Correlation Coefficient

Global Eagle  Dolphin Entertainment

Pay attention - limited upside

The 3 months correlation between Global and Dolphin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Eagle Entertainment and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment and Global Eagle 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 Global Eagle Entertainment are associated (or correlated) with Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Global Eagle i.e., Global Eagle and Dolphin Entertainment go up and down completely randomly.

Pair Corralation between Global Eagle and Dolphin Entertainment

If you would invest (100.00) in Global Eagle Entertainment on January 20, 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	0.0%
Values	Daily Returns

Global Eagle Entertainment  vs.  Dolphin Entertainment

Global Eagle Enterta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Eagle Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Global Eagle is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Dolphin Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dolphin Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Global Eagle and Dolphin Entertainment

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

The idea behind Global Eagle Entertainment and Dolphin Entertainment 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.