Correlation Between EEDUCATION ALBERT and NEXANS
Can any of the company-specific risk be diversified away by investing in both EEDUCATION ALBERT and NEXANS 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 EEDUCATION ALBERT and NEXANS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EEDUCATION ALBERT AB and NEXANS, you can compare the effects of market volatilities on EEDUCATION ALBERT and NEXANS 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 EEDUCATION ALBERT with a short position of NEXANS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EEDUCATION ALBERT and NEXANS.
Diversification Opportunities for EEDUCATION ALBERT and NEXANS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EEDUCATION and NEXANS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EEDUCATION ALBERT AB and NEXANS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXANS and EEDUCATION ALBERT 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 EEDUCATION ALBERT AB are associated (or correlated) with NEXANS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXANS has no effect on the direction of EEDUCATION ALBERT i.e., EEDUCATION ALBERT and NEXANS go up and down completely randomly.
Pair Corralation between EEDUCATION ALBERT and NEXANS
Assuming the 90 days horizon EEDUCATION ALBERT AB is expected to under-perform the NEXANS. In addition to that, EEDUCATION ALBERT is 1.06 times more volatile than NEXANS. It trades about -0.03 of its total potential returns per unit of risk. NEXANS is currently generating about 0.04 per unit of volatility. If you would invest 8,083 in NEXANS on September 19, 2024 and sell it today you would earn a total of 2,437 from holding NEXANS or generate 30.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
EEDUCATION ALBERT AB vs. NEXANS
Performance |
| Timeline |
| EEDUCATION ALBERT |
| NEXANS |
EEDUCATION ALBERT and NEXANS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EEDUCATION ALBERT and NEXANS
The main advantage of trading using opposite EEDUCATION ALBERT and NEXANS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EEDUCATION ALBERT position performs unexpectedly, NEXANS 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 NEXANS will offset losses from the drop in NEXANS's long position.| EEDUCATION ALBERT vs. Superior Plus Corp | EEDUCATION ALBERT vs. SIVERS SEMICONDUCTORS AB | EEDUCATION ALBERT vs. Norsk Hydro ASA | EEDUCATION ALBERT vs. Reliance Steel Aluminum |
| NEXANS vs. Laureate Education | NEXANS vs. Lion One Metals | NEXANS vs. EEDUCATION ALBERT AB | NEXANS vs. InterContinental Hotels 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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