Correlation Between Cell Impact and Enersize
Can any of the company-specific risk be diversified away by investing in both Cell Impact and Enersize 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 Cell Impact and Enersize into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cell Impact AB and Enersize Oy, you can compare the effects of market volatilities on Cell Impact and Enersize 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 Cell Impact with a short position of Enersize. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cell Impact and Enersize.
Diversification Opportunities for Cell Impact and Enersize
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cell and Enersize is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cell Impact AB and Enersize Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersize Oy and Cell Impact 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 Cell Impact AB are associated (or correlated) with Enersize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersize Oy has no effect on the direction of Cell Impact i.e., Cell Impact and Enersize go up and down completely randomly.
Pair Corralation between Cell Impact and Enersize
Assuming the 90 days horizon Cell Impact AB is expected to under-perform the Enersize. In addition to that, Cell Impact is 1.24 times more volatile than Enersize Oy. It trades about -0.03 of its total potential returns per unit of risk. Enersize Oy is currently generating about -0.01 per unit of volatility. If you would invest 3.71 in Enersize Oy on August 30, 2024 and sell it today you would lose (3.14) from holding Enersize Oy or give up 84.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cell Impact AB vs. Enersize Oy
Performance |
| Timeline |
| Cell Impact AB |
| Enersize Oy |
Cell Impact and Enersize Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cell Impact and Enersize
The main advantage of trading using opposite Cell Impact and Enersize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cell Impact position performs unexpectedly, Enersize 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 Enersize will offset losses from the drop in Enersize's long position.| Cell Impact vs. Impact Coatings publ | Cell Impact vs. Powercell Sweden | Cell Impact vs. Oncopeptides AB | Cell Impact vs. SaltX Technology Holding |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |