Correlation Between Cenergy Holdings and Miko NV
Can any of the company-specific risk be diversified away by investing in both Cenergy Holdings and Miko NV 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 Cenergy Holdings and Miko NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenergy Holdings SA and Miko NV, you can compare the effects of market volatilities on Cenergy Holdings and Miko NV 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 Cenergy Holdings with a short position of Miko NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenergy Holdings and Miko NV.
Diversification Opportunities for Cenergy Holdings and Miko NV
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cenergy and Miko is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cenergy Holdings SA and Miko NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miko NV and Cenergy Holdings 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 Cenergy Holdings SA are associated (or correlated) with Miko NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miko NV has no effect on the direction of Cenergy Holdings i.e., Cenergy Holdings and Miko NV go up and down completely randomly.
Pair Corralation between Cenergy Holdings and Miko NV
Assuming the 90 days trading horizon Cenergy Holdings SA is expected to generate 1.24 times more return on investment than Miko NV. However, Cenergy Holdings is 1.24 times more volatile than Miko NV. It trades about 0.05 of its potential returns per unit of risk. Miko NV is currently generating about -0.03 per unit of risk. If you would invest 592.00 in Cenergy Holdings SA on August 31, 2024 and sell it today you would earn a total of 280.00 from holding Cenergy Holdings SA or generate 47.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
Cenergy Holdings SA vs. Miko NV
Performance |
| Timeline |
| Cenergy Holdings |
| Miko NV |
Cenergy Holdings and Miko NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenergy Holdings and Miko NV
The main advantage of trading using opposite Cenergy Holdings and Miko NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenergy Holdings position performs unexpectedly, Miko NV 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 Miko NV will offset losses from the drop in Miko NV's long position.| Cenergy Holdings vs. Viohalco SA | Cenergy Holdings vs. Jensen Group | Cenergy Holdings vs. Floridienne | Cenergy Holdings vs. Compagnie du Bois |
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 Stocks Directory module to find actively traded stocks across global markets.
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