Correlation Between Electronic Arts and Tritent International

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

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

Diversification Opportunities for Electronic Arts and Tritent International

0.0

Correlation Coefficient

Electronic Arts  Tritent International

Pay attention - limited upside

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

Pair Corralation between Electronic Arts and Tritent International

If you would invest  14,400  in Electronic Arts on September 13, 2024 and sell it today you would earn a total of  1,950  from holding Electronic Arts or generate 13.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.67%
Values	Daily Returns

Electronic Arts  vs.  Tritent International Agricult

Electronic Arts

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Electronic Arts are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Electronic Arts may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Tritent International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tritent International Agriculture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Tritent International is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Electronic Arts and Tritent International

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

The idea behind Electronic Arts and Tritent International Agriculture 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.