Correlation Between CarsalesCom and ENSTAR
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By analyzing existing cross correlation between CarsalesCom Ltd ADR and ENSTAR FIN LLC, you can compare the effects of market volatilities on CarsalesCom and ENSTAR 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 CarsalesCom with a short position of ENSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CarsalesCom and ENSTAR.
Diversification Opportunities for CarsalesCom and ENSTAR
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CarsalesCom and ENSTAR is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CarsalesCom Ltd ADR and ENSTAR FIN LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENSTAR FIN LLC and CarsalesCom 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 CarsalesCom Ltd ADR are associated (or correlated) with ENSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENSTAR FIN LLC has no effect on the direction of CarsalesCom i.e., CarsalesCom and ENSTAR go up and down completely randomly.
Pair Corralation between CarsalesCom and ENSTAR
Assuming the 90 days horizon CarsalesCom Ltd ADR is expected to generate 0.96 times more return on investment than ENSTAR. However, CarsalesCom Ltd ADR is 1.04 times less risky than ENSTAR. It trades about 0.08 of its potential returns per unit of risk. ENSTAR FIN LLC is currently generating about 0.01 per unit of risk. If you would invest 2,853 in CarsalesCom Ltd ADR on September 4, 2024 and sell it today you would earn a total of 2,646 from holding CarsalesCom Ltd ADR or generate 92.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.1% |
| Values | Daily Returns |
CarsalesCom Ltd ADR vs. ENSTAR FIN LLC
Performance |
| Timeline |
| CarsalesCom ADR |
| ENSTAR FIN LLC |
CarsalesCom and ENSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CarsalesCom and ENSTAR
The main advantage of trading using opposite CarsalesCom and ENSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CarsalesCom position performs unexpectedly, ENSTAR 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 ENSTAR will offset losses from the drop in ENSTAR's long position.| CarsalesCom vs. Quizam Media | CarsalesCom vs. DGTL Holdings | CarsalesCom vs. Tinybeans Group Limited | CarsalesCom vs. Sabio Holdings |
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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