Correlation Between Allegroeu and Enea SA
Can any of the company-specific risk be diversified away by investing in both Allegroeu and Enea SA 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 Allegroeu and Enea SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegroeu SA and Enea SA, you can compare the effects of market volatilities on Allegroeu and Enea SA 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 Allegroeu with a short position of Enea SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegroeu and Enea SA.
Diversification Opportunities for Allegroeu and Enea SA
Good diversification
The 3 months correlation between Allegroeu and Enea is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Allegroeu SA and Enea SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enea SA and Allegroeu 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 Allegroeu SA are associated (or correlated) with Enea SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enea SA has no effect on the direction of Allegroeu i.e., Allegroeu and Enea SA go up and down completely randomly.
Pair Corralation between Allegroeu and Enea SA
Assuming the 90 days trading horizon Allegroeu SA is expected to under-perform the Enea SA. In addition to that, Allegroeu is 1.75 times more volatile than Enea SA. It trades about -0.06 of its total potential returns per unit of risk. Enea SA is currently generating about 0.05 per unit of volatility. If you would invest 1,362 in Enea SA on December 6, 2024 and sell it today you would earn a total of 13.00 from holding Enea SA or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegroeu SA vs. Enea SA
Performance |
| Timeline |
| Allegroeu SA |
| Enea SA |
Allegroeu and Enea SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegroeu and Enea SA
The main advantage of trading using opposite Allegroeu and Enea SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegroeu position performs unexpectedly, Enea SA 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 Enea SA will offset losses from the drop in Enea SA's long position.| Allegroeu vs. Skyline Investment SA | ||
| Allegroeu vs. Enter Air SA | ||
| Allegroeu vs. mBank SA | ||
| Allegroeu vs. Echo Investment SA |
| Enea SA vs. CI Games SA | ||
| Enea SA vs. Santander Bank Polska | ||
| Enea SA vs. Movie Games SA | ||
| Enea SA vs. Datawalk SA |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |