Correlation Between Ease2pay and Allfunds
Can any of the company-specific risk be diversified away by investing in both Ease2pay and Allfunds 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 Ease2pay and Allfunds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ease2pay NV and Allfunds Group, you can compare the effects of market volatilities on Ease2pay and Allfunds 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 Ease2pay with a short position of Allfunds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ease2pay and Allfunds.
Diversification Opportunities for Ease2pay and Allfunds
Very good diversification
The 3 months correlation between Ease2pay and Allfunds is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ease2pay NV and Allfunds Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allfunds Group and Ease2pay 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 Ease2pay NV are associated (or correlated) with Allfunds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allfunds Group has no effect on the direction of Ease2pay i.e., Ease2pay and Allfunds go up and down completely randomly.
Pair Corralation between Ease2pay and Allfunds
Assuming the 90 days trading horizon Ease2pay NV is expected to generate 2.29 times more return on investment than Allfunds. However, Ease2pay is 2.29 times more volatile than Allfunds Group. It trades about 0.0 of its potential returns per unit of risk. Allfunds Group is currently generating about -0.16 per unit of risk. If you would invest 48.00 in Ease2pay NV on August 27, 2024 and sell it today you would lose (1.00) from holding Ease2pay NV or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ease2pay NV vs. Allfunds Group
Performance |
| Timeline |
| Ease2pay NV |
| Allfunds Group |
Ease2pay and Allfunds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ease2pay and Allfunds
The main advantage of trading using opposite Ease2pay and Allfunds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ease2pay position performs unexpectedly, Allfunds 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 Allfunds will offset losses from the drop in Allfunds' long position.| Ease2pay vs. Ctac NV | Ease2pay vs. Kendrion NV | Ease2pay vs. NV Nederlandsche Apparatenfabriek | Ease2pay vs. iShares SP 500 |
| Allfunds vs. Pershing Square Holdings | Allfunds vs. Universal Music Group | Allfunds vs. BlackRock ESG Multi Asset | Allfunds vs. Aalberts Industries NV |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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