Correlation Between IMedia Brands and EBay
Can any of the company-specific risk be diversified away by investing in both IMedia Brands and EBay 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 IMedia Brands and EBay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMedia Brands and eBay Inc, you can compare the effects of market volatilities on IMedia Brands and EBay 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 IMedia Brands with a short position of EBay. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMedia Brands and EBay.
Diversification Opportunities for IMedia Brands and EBay
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMedia and EBay is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding IMedia Brands and eBay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eBay Inc and IMedia Brands 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 IMedia Brands are associated (or correlated) with EBay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eBay Inc has no effect on the direction of IMedia Brands i.e., IMedia Brands and EBay go up and down completely randomly.
Pair Corralation between IMedia Brands and EBay
If you would invest 3,971 in eBay Inc on January 19, 2024 and sell it today you would earn a total of 1,103 from holding eBay Inc or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.81% |
| Values | Daily Returns |
IMedia Brands vs. eBay Inc
Performance |
| Timeline |
| IMedia Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eBay Inc |
IMedia Brands and EBay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMedia Brands and EBay
The main advantage of trading using opposite IMedia Brands and EBay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMedia Brands position performs unexpectedly, EBay 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 EBay will offset losses from the drop in EBay's long position.| IMedia Brands vs. Janone Inc | IMedia Brands vs. Xcel Brands | IMedia Brands vs. FlexShopper | IMedia Brands vs. Monopar Therapeutics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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