Correlation Between Eline Entertainment and GiveMePower Corp

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

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

Diversification Opportunities for Eline Entertainment and GiveMePower Corp

-0.13

Correlation Coefficient

Eline Entertainment  GiveMePower Corp

Good diversification

The 3 months correlation between Eline and GiveMePower is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group and GiveMePower Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiveMePower Corp and Eline 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 Eline Entertainment Group are associated (or correlated) with GiveMePower Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiveMePower Corp has no effect on the direction of Eline Entertainment i.e., Eline Entertainment and GiveMePower Corp go up and down completely randomly.

Pair Corralation between Eline Entertainment and GiveMePower Corp

Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 2.9 times more return on investment than GiveMePower Corp. However, Eline Entertainment is 2.9 times more volatile than GiveMePower Corp. It trades about 0.15 of its potential returns per unit of risk. GiveMePower Corp is currently generating about -0.05 per unit of risk. If you would invest  0.01  in Eline Entertainment Group on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Eline Entertainment Group or generate 0.0% return on investment over 90 days.

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

Eline Entertainment Group  vs.  GiveMePower Corp

Eline Entertainment

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eline Entertainment Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Eline Entertainment demonstrated solid returns over the last few months and may actually be approaching a breakup point.

GiveMePower Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GiveMePower Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Eline Entertainment and GiveMePower Corp

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

The idea behind Eline Entertainment Group and GiveMePower Corp 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.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.