Correlation Between BigBen Interactive and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both BigBen Interactive 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 BigBen Interactive and Ekinops SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBen Interactive and Ekinops SA, you can compare the effects of market volatilities on BigBen Interactive 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 BigBen Interactive with a short position of Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBen Interactive and Ekinops SA.
Diversification Opportunities for BigBen Interactive and Ekinops SA
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BigBen and Ekinops is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BigBen Interactive and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA and BigBen Interactive 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 BigBen Interactive 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 BigBen Interactive i.e., BigBen Interactive and Ekinops SA go up and down completely randomly.
Pair Corralation between BigBen Interactive and Ekinops SA
Assuming the 90 days trading horizon BigBen Interactive is expected to under-perform the Ekinops SA. But the stock apears to be less risky and, when comparing its historical volatility, BigBen Interactive is 1.08 times less risky than Ekinops SA. The stock trades about -0.51 of its potential returns per unit of risk. The Ekinops SA is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Ekinops SA on August 24, 2024 and sell it today you would lose (20.00) from holding Ekinops SA or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBen Interactive vs. Ekinops SA
Performance |
| Timeline |
| BigBen Interactive |
| Ekinops SA |
BigBen Interactive and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBen Interactive and Ekinops SA
The main advantage of trading using opposite BigBen Interactive and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBen Interactive 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.| BigBen Interactive vs. Nacon Sa | BigBen Interactive vs. Chargeurs SA | BigBen Interactive vs. Claranova SE | BigBen Interactive vs. Trigano SA |
| Ekinops SA vs. Sartorius Stedim Biotech | Ekinops SA vs. Lectra SA | Ekinops SA vs. Teleperformance SE | Ekinops SA vs. Trigano 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |