Correlation Between 2G ENERGY and RYANAIR HLDGS
Can any of the company-specific risk be diversified away by investing in both 2G ENERGY and RYANAIR HLDGS 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 2G ENERGY and RYANAIR HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2G ENERGY and RYANAIR HLDGS ADR, you can compare the effects of market volatilities on 2G ENERGY and RYANAIR HLDGS 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 2G ENERGY with a short position of RYANAIR HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2G ENERGY and RYANAIR HLDGS.
Diversification Opportunities for 2G ENERGY and RYANAIR HLDGS
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between 2GB and RYANAIR is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding 2G ENERGY and RYANAIR HLDGS ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RYANAIR HLDGS ADR and 2G ENERGY 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 2G ENERGY are associated (or correlated) with RYANAIR HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RYANAIR HLDGS ADR has no effect on the direction of 2G ENERGY i.e., 2G ENERGY and RYANAIR HLDGS go up and down completely randomly.
Pair Corralation between 2G ENERGY and RYANAIR HLDGS
Assuming the 90 days trading horizon 2G ENERGY is expected to under-perform the RYANAIR HLDGS. In addition to that, 2G ENERGY is 2.3 times more volatile than RYANAIR HLDGS ADR. It trades about -0.06 of its total potential returns per unit of risk. RYANAIR HLDGS ADR is currently generating about -0.05 per unit of volatility. If you would invest 4,160 in RYANAIR HLDGS ADR on August 29, 2024 and sell it today you would lose (60.00) from holding RYANAIR HLDGS ADR or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
2G ENERGY vs. RYANAIR HLDGS ADR
Performance |
| Timeline |
| 2G ENERGY |
| RYANAIR HLDGS ADR |
2G ENERGY and RYANAIR HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2G ENERGY and RYANAIR HLDGS
The main advantage of trading using opposite 2G ENERGY and RYANAIR HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2G ENERGY position performs unexpectedly, RYANAIR HLDGS 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 RYANAIR HLDGS will offset losses from the drop in RYANAIR HLDGS's long position.| 2G ENERGY vs. FISH PAYK HEALTH | 2G ENERGY vs. GREENX METALS LTD | 2G ENERGY vs. Lion One Metals | 2G ENERGY vs. Zijin Mining Group |
| RYANAIR HLDGS vs. Southwest Airlines Co | RYANAIR HLDGS vs. Ryanair Holdings plc | RYANAIR HLDGS vs. Superior Plus Corp | RYANAIR HLDGS vs. NMI Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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