Correlation Between Edenred SA and Enertime SAS
Can any of the company-specific risk be diversified away by investing in both Edenred SA and Enertime SAS 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 Edenred SA and Enertime SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edenred SA and Enertime SAS, you can compare the effects of market volatilities on Edenred SA and Enertime SAS 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 Edenred SA with a short position of Enertime SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edenred SA and Enertime SAS.
Diversification Opportunities for Edenred SA and Enertime SAS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edenred and Enertime is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edenred SA and Enertime SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enertime SAS and Edenred SA 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 Edenred SA are associated (or correlated) with Enertime SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enertime SAS has no effect on the direction of Edenred SA i.e., Edenred SA and Enertime SAS go up and down completely randomly.
Pair Corralation between Edenred SA and Enertime SAS
Assuming the 90 days trading horizon Edenred SA is expected to generate 0.93 times more return on investment than Enertime SAS. However, Edenred SA is 1.08 times less risky than Enertime SAS. It trades about -0.08 of its potential returns per unit of risk. Enertime SAS is currently generating about -0.12 per unit of risk. If you would invest 4,309 in Edenred SA on September 3, 2024 and sell it today you would lose (1,191) from holding Edenred SA or give up 27.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Edenred SA vs. Enertime SAS
Performance |
| Timeline |
| Edenred SA |
| Enertime SAS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Edenred SA and Enertime SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edenred SA and Enertime SAS
The main advantage of trading using opposite Edenred SA and Enertime SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edenred SA position performs unexpectedly, Enertime SAS 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 Enertime SAS will offset losses from the drop in Enertime SAS's long position.| Edenred SA vs. Derichebourg | Edenred SA vs. Mersen SA | Edenred SA vs. Trigano SA | Edenred SA vs. Chargeurs SA |
| Enertime SAS vs. Derichebourg | Enertime SAS vs. Mersen SA | Enertime SAS vs. Trigano SA | Enertime SAS vs. Chargeurs SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |