Correlation Between Enter Air and SEDANA MEDICAL
Can any of the company-specific risk be diversified away by investing in both Enter Air and SEDANA MEDICAL 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 Enter Air and SEDANA MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enter Air SA and SEDANA MEDICAL AB, you can compare the effects of market volatilities on Enter Air and SEDANA MEDICAL 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 Enter Air with a short position of SEDANA MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and SEDANA MEDICAL.
Diversification Opportunities for Enter Air and SEDANA MEDICAL
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enter and SEDANA is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and SEDANA MEDICAL AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEDANA MEDICAL AB and Enter Air 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 Enter Air SA are associated (or correlated) with SEDANA MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEDANA MEDICAL AB has no effect on the direction of Enter Air i.e., Enter Air and SEDANA MEDICAL go up and down completely randomly.
Pair Corralation between Enter Air and SEDANA MEDICAL
Assuming the 90 days trading horizon Enter Air SA is expected to generate 0.82 times more return on investment than SEDANA MEDICAL. However, Enter Air SA is 1.22 times less risky than SEDANA MEDICAL. It trades about 0.05 of its potential returns per unit of risk. SEDANA MEDICAL AB is currently generating about 0.02 per unit of risk. If you would invest 914.00 in Enter Air SA on December 2, 2024 and sell it today you would earn a total of 330.00 from holding Enter Air SA or generate 36.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enter Air SA vs. SEDANA MEDICAL AB
Performance |
| Timeline |
| Enter Air SA |
| SEDANA MEDICAL AB |
Enter Air and SEDANA MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and SEDANA MEDICAL
The main advantage of trading using opposite Enter Air and SEDANA MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, SEDANA MEDICAL 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 SEDANA MEDICAL will offset losses from the drop in SEDANA MEDICAL's long position.| Enter Air vs. Computer And Technologies | Enter Air vs. WILLIS LEASE FIN | Enter Air vs. FUYO GENERAL LEASE | Enter Air vs. Sunny Optical Technology |
| SEDANA MEDICAL vs. USU Software AG | SEDANA MEDICAL vs. Sqs Software Quality | SEDANA MEDICAL vs. AXWAY SOFTWARE EO | SEDANA MEDICAL vs. LOANDEPOT INC A |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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