Correlation Between SINA and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both SINA and Electronic Arts 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 SINA and Electronic Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINA Corporation and Electronic Arts, you can compare the effects of market volatilities on SINA and Electronic Arts 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 SINA with a short position of Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINA and Electronic Arts.
Diversification Opportunities for SINA and Electronic Arts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SINA and Electronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SINA Corp. and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts and SINA 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 SINA Corporation are associated (or correlated) with Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of SINA i.e., SINA and Electronic Arts go up and down completely randomly.
Pair Corralation between SINA and Electronic Arts
If you would invest (100.00) in SINA Corporation on January 26, 2024 and sell it today you would earn a total of 100.00 from holding SINA Corporation 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 |
SINA Corp. vs. Electronic Arts
Performance |
| Timeline |
| SINA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Electronic Arts |
SINA and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINA and Electronic Arts
The main advantage of trading using opposite SINA and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINA position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| SINA vs. Mitsubishi UFJ Lease | SINA vs. Loandepot | SINA vs. U Haul Holding | SINA vs. The Hanover Insurance |
| Electronic Arts vs. Mobile Global Esports | Electronic Arts vs. GD Culture Group | Electronic Arts vs. Playstudios | Electronic Arts vs. Tiidal Gaming Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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