Correlation Between Energisme and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both Energisme and Ekinops 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 Energisme and Ekinops SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisme and Ekinops SA, you can compare the effects of market volatilities on Energisme and Ekinops 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 Energisme with a short position of Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisme and Ekinops SA.
Diversification Opportunities for Energisme and Ekinops SA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Energisme and Ekinops is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Energisme and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA and Energisme 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 Energisme are associated (or correlated) with Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of Energisme i.e., Energisme and Ekinops SA go up and down completely randomly.
Pair Corralation between Energisme and Ekinops SA
Assuming the 90 days trading horizon Energisme is expected to under-perform the Ekinops SA. In addition to that, Energisme is 1.75 times more volatile than Ekinops SA. It trades about -0.27 of its total potential returns per unit of risk. Ekinops SA is currently generating about -0.25 per unit of volatility. If you would invest 393.00 in Ekinops SA on September 1, 2024 and sell it today you would lose (49.00) from holding Ekinops SA or give up 12.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Energisme vs. Ekinops SA
Performance |
| Timeline |
| Energisme |
| Ekinops SA |
Energisme and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energisme and Ekinops SA
The main advantage of trading using opposite Energisme and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisme position performs unexpectedly, Ekinops 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.| Energisme vs. Kerlink SAS | Energisme vs. Nacon Sa | Energisme vs. Agripower France Sa | Energisme vs. Hydrogen Refueling Solutions |
| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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