Correlation Between Atresmedia and Eneraqua Technologies
Can any of the company-specific risk be diversified away by investing in both Atresmedia and Eneraqua Technologies 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 Atresmedia and Eneraqua Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and Eneraqua Technologies PLC, you can compare the effects of market volatilities on Atresmedia and Eneraqua Technologies 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 Atresmedia with a short position of Eneraqua Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Eneraqua Technologies.
Diversification Opportunities for Atresmedia and Eneraqua Technologies
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atresmedia and Eneraqua is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and Eneraqua Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eneraqua Technologies PLC and Atresmedia 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 Atresmedia are associated (or correlated) with Eneraqua Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eneraqua Technologies PLC has no effect on the direction of Atresmedia i.e., Atresmedia and Eneraqua Technologies go up and down completely randomly.
Pair Corralation between Atresmedia and Eneraqua Technologies
Assuming the 90 days trading horizon Atresmedia is expected to generate 2.92 times less return on investment than Eneraqua Technologies. But when comparing it to its historical volatility, Atresmedia is 2.35 times less risky than Eneraqua Technologies. It trades about 0.02 of its potential returns per unit of risk. Eneraqua Technologies PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,950 in Eneraqua Technologies PLC on October 26, 2024 and sell it today you would earn a total of 50.00 from holding Eneraqua Technologies PLC or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia vs. Eneraqua Technologies PLC
Performance |
| Timeline |
| Atresmedia |
| Eneraqua Technologies PLC |
Atresmedia and Eneraqua Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and Eneraqua Technologies
The main advantage of trading using opposite Atresmedia and Eneraqua Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, Eneraqua Technologies 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 Eneraqua Technologies will offset losses from the drop in Eneraqua Technologies' long position.| Atresmedia vs. Berkshire Hathaway | Atresmedia vs. Samsung Electronics Co | Atresmedia vs. Samsung Electronics Co | Atresmedia vs. Chocoladefabriken Lindt Spruengli |
| Eneraqua Technologies vs. Beazer Homes USA | Eneraqua Technologies vs. Home Depot | Eneraqua Technologies vs. HCA Healthcare | Eneraqua Technologies vs. UNIQA Insurance 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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