Correlation Between CIA ENGER and EVN AG
Can any of the company-specific risk be diversified away by investing in both CIA ENGER and EVN AG 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 CIA ENGER and EVN AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIA ENGER ADR and EVN AG, you can compare the effects of market volatilities on CIA ENGER and EVN AG 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 CIA ENGER with a short position of EVN AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIA ENGER and EVN AG.
Diversification Opportunities for CIA ENGER and EVN AG
Very good diversification
The 3 months correlation between CIA and EVN is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CIA ENGER ADR and EVN AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVN AG and CIA ENGER 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 CIA ENGER ADR are associated (or correlated) with EVN AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVN AG has no effect on the direction of CIA ENGER i.e., CIA ENGER and EVN AG go up and down completely randomly.
Pair Corralation between CIA ENGER and EVN AG
If you would invest 2,220 in EVN AG on November 2, 2024 and sell it today you would earn a total of 80.00 from holding EVN AG or generate 3.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CIA ENGER ADR vs. EVN AG
Performance |
Timeline |
CIA ENGER ADR |
EVN AG |
CIA ENGER and EVN AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIA ENGER and EVN AG
The main advantage of trading using opposite CIA ENGER and EVN AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIA ENGER position performs unexpectedly, EVN AG 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 EVN AG will offset losses from the drop in EVN AG's long position.CIA ENGER vs. Inspire Medical Systems | CIA ENGER vs. MAGNUM MINING EXP | CIA ENGER vs. Globex Mining Enterprises | CIA ENGER vs. GALENA MINING LTD |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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