Correlation Between Biztech Konsulting and E Shopping
Can any of the company-specific risk be diversified away by investing in both Biztech Konsulting and E Shopping 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 Biztech Konsulting and E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biztech Konsulting SA and E shopping Group SA, you can compare the effects of market volatilities on Biztech Konsulting and E Shopping 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 Biztech Konsulting with a short position of E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biztech Konsulting and E Shopping.
Diversification Opportunities for Biztech Konsulting and E Shopping
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biztech and ESG is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Biztech Konsulting SA and E shopping Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E shopping Group and Biztech Konsulting 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 Biztech Konsulting SA are associated (or correlated) with E Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E shopping Group has no effect on the direction of Biztech Konsulting i.e., Biztech Konsulting and E Shopping go up and down completely randomly.
Pair Corralation between Biztech Konsulting and E Shopping
Assuming the 90 days trading horizon Biztech Konsulting SA is expected to generate 0.59 times more return on investment than E Shopping. However, Biztech Konsulting SA is 1.7 times less risky than E Shopping. It trades about 0.16 of its potential returns per unit of risk. E shopping Group SA is currently generating about -0.04 per unit of risk. If you would invest 17.00 in Biztech Konsulting SA on September 28, 2024 and sell it today you would earn a total of 2.00 from holding Biztech Konsulting SA or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Biztech Konsulting SA vs. E shopping Group SA
Performance |
| Timeline |
| Biztech Konsulting |
| E shopping Group |
Biztech Konsulting and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biztech Konsulting and E Shopping
The main advantage of trading using opposite Biztech Konsulting and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biztech Konsulting position performs unexpectedly, E Shopping 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 E Shopping will offset losses from the drop in E Shopping's long position.| Biztech Konsulting vs. Drago entertainment SA | Biztech Konsulting vs. LSI Software SA | Biztech Konsulting vs. PLAYWAY SA | Biztech Konsulting vs. GreenX Metals |
| E Shopping vs. Banco Santander SA | E Shopping vs. UniCredit SpA | E Shopping vs. CEZ as | E Shopping vs. Polski Koncern Naftowy |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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