Correlation Between Erste Group and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both Erste Group and SQUIRREL MEDIA 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 Erste Group and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erste Group Bank and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on Erste Group and SQUIRREL MEDIA 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 Erste Group with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and SQUIRREL MEDIA.
Diversification Opportunities for Erste Group and SQUIRREL MEDIA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Erste and SQUIRREL is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA and Erste Group 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 Erste Group Bank are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of Erste Group i.e., Erste Group and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between Erste Group and SQUIRREL MEDIA
Assuming the 90 days trading horizon Erste Group is expected to generate 8.26 times less return on investment than SQUIRREL MEDIA. But when comparing it to its historical volatility, Erste Group Bank is 2.34 times less risky than SQUIRREL MEDIA. It trades about 0.11 of its potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 121.00 in SQUIRREL MEDIA SA on October 16, 2024 and sell it today you would earn a total of 19.00 from holding SQUIRREL MEDIA SA or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erste Group Bank vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| Erste Group Bank |
| SQUIRREL MEDIA SA |
Erste Group and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and SQUIRREL MEDIA
The main advantage of trading using opposite Erste Group and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| Erste Group vs. Sch Environnement SA | Erste Group vs. Lifeway Foods | Erste Group vs. EBRO FOODS | Erste Group vs. INDOFOOD AGRI RES |
| SQUIRREL MEDIA vs. Warner Music Group | SQUIRREL MEDIA vs. Superior Plus Corp | SQUIRREL MEDIA vs. NMI Holdings | SQUIRREL MEDIA vs. SIVERS SEMICONDUCTORS AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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