Correlation Between Ebro Foods and Soken Chemical
Can any of the company-specific risk be diversified away by investing in both Ebro Foods and Soken Chemical 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 Ebro Foods and Soken Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebro Foods SA and Soken Chemical Engineering, you can compare the effects of market volatilities on Ebro Foods and Soken Chemical 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 Ebro Foods with a short position of Soken Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and Soken Chemical.
Diversification Opportunities for Ebro Foods and Soken Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ebro and Soken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods SA and Soken Chemical Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soken Chemical Engin and Ebro Foods 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 Ebro Foods SA are associated (or correlated) with Soken Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soken Chemical Engin has no effect on the direction of Ebro Foods i.e., Ebro Foods and Soken Chemical go up and down completely randomly.
Pair Corralation between Ebro Foods and Soken Chemical
If you would invest 1,584 in Ebro Foods SA on October 15, 2024 and sell it today you would earn a total of 4.00 from holding Ebro Foods SA or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Ebro Foods SA vs. Soken Chemical Engineering
Performance |
| Timeline |
| Ebro Foods SA |
| Soken Chemical Engin |
Ebro Foods and Soken Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebro Foods and Soken Chemical
The main advantage of trading using opposite Ebro Foods and Soken Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods position performs unexpectedly, Soken Chemical 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 Soken Chemical will offset losses from the drop in Soken Chemical's long position.| Ebro Foods vs. Superior Plus Corp | Ebro Foods vs. NMI Holdings | Ebro Foods vs. SIVERS SEMICONDUCTORS AB | Ebro Foods vs. Talanx AG |
| Soken Chemical vs. COFCO Joycome Foods | Soken Chemical vs. T Mobile | Soken Chemical vs. FIH MOBILE | Soken Chemical vs. Ebro Foods 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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