Correlation Between EVS Broadcast and ALSO Holding
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and ALSO Holding 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 EVS Broadcast and ALSO Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and ALSO Holding AG, you can compare the effects of market volatilities on EVS Broadcast and ALSO Holding 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 EVS Broadcast with a short position of ALSO Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and ALSO Holding.
Diversification Opportunities for EVS Broadcast and ALSO Holding
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EVS and ALSO is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and ALSO Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALSO Holding AG and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with ALSO Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALSO Holding AG has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and ALSO Holding go up and down completely randomly.
Pair Corralation between EVS Broadcast and ALSO Holding
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.93 times more return on investment than ALSO Holding. However, EVS Broadcast Equipment is 1.08 times less risky than ALSO Holding. It trades about 0.06 of its potential returns per unit of risk. ALSO Holding AG is currently generating about 0.05 per unit of risk. If you would invest 1,993 in EVS Broadcast Equipment on September 2, 2024 and sell it today you would earn a total of 862.00 from holding EVS Broadcast Equipment or generate 43.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. ALSO Holding AG
Performance |
| Timeline |
| EVS Broadcast Equipment |
| ALSO Holding AG |
EVS Broadcast and ALSO Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and ALSO Holding
The main advantage of trading using opposite EVS Broadcast and ALSO Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, ALSO Holding 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 ALSO Holding will offset losses from the drop in ALSO Holding's long position.| EVS Broadcast vs. Uniper SE | EVS Broadcast vs. Mulberry Group PLC | EVS Broadcast vs. London Security Plc | EVS Broadcast vs. Triad Group PLC |
| ALSO Holding vs. Telecom Italia SpA | ALSO Holding vs. Axfood AB | ALSO Holding vs. EVS Broadcast Equipment | ALSO Holding vs. Sligro Food 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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