Correlation Between EEDUCATION ALBERT and APPLIED MATERIALS

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

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

Diversification Opportunities for EEDUCATION ALBERT and APPLIED MATERIALS

0.0

Correlation Coefficient

EEDUCATION ALBERT  APPLIED MATERIALS

Pay attention - limited upside

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

Pair Corralation between EEDUCATION ALBERT and APPLIED MATERIALS

If you would invest  12,026  in APPLIED MATERIALS on April 21, 2025 and sell it today you would earn a total of  4,344  from holding APPLIED MATERIALS or generate 36.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

EEDUCATION ALBERT AB  vs.  APPLIED MATERIALS

EEDUCATION ALBERT

Risk-Adjusted Performance

Very Weak

Over the last 90 days EEDUCATION ALBERT AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EEDUCATION ALBERT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

APPLIED MATERIALS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in APPLIED MATERIALS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, APPLIED MATERIALS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EEDUCATION ALBERT and APPLIED MATERIALS

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

The idea behind EEDUCATION ALBERT AB and APPLIED MATERIALS 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.