Correlation Between EVS Broadcast and ELECTROLUX
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and ELECTROLUX 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 ELECTROLUX 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 ELECTROLUX B ADR2, you can compare the effects of market volatilities on EVS Broadcast and ELECTROLUX 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 ELECTROLUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and ELECTROLUX.
Diversification Opportunities for EVS Broadcast and ELECTROLUX
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between EVS and ELECTROLUX is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and ELECTROLUX B ADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELECTROLUX B ADR2 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 ELECTROLUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELECTROLUX B ADR2 has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and ELECTROLUX go up and down completely randomly.
Pair Corralation between EVS Broadcast and ELECTROLUX
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.61 times more return on investment than ELECTROLUX. However, EVS Broadcast Equipment is 1.63 times less risky than ELECTROLUX. It trades about 0.04 of its potential returns per unit of risk. ELECTROLUX B ADR2 is currently generating about 0.01 per unit of risk. If you would invest 2,613 in EVS Broadcast Equipment on September 14, 2024 and sell it today you would earn a total of 427.00 from holding EVS Broadcast Equipment or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. ELECTROLUX B ADR2
Performance |
| Timeline |
| EVS Broadcast Equipment |
| ELECTROLUX B ADR2 |
EVS Broadcast and ELECTROLUX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and ELECTROLUX
The main advantage of trading using opposite EVS Broadcast and ELECTROLUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, ELECTROLUX 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 ELECTROLUX will offset losses from the drop in ELECTROLUX's long position.| EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc |
| ELECTROLUX vs. EVS Broadcast Equipment | ELECTROLUX vs. PT Global Mediacom | ELECTROLUX vs. PRECISION DRILLING P | ELECTROLUX vs. TITANIUM TRANSPORTGROUP |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |