Correlation Between ED Invest and Answear SA
Can any of the company-specific risk be diversified away by investing in both ED Invest and Answear SA 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 ED Invest and Answear SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ED Invest SA and Answear SA, you can compare the effects of market volatilities on ED Invest and Answear SA 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 ED Invest with a short position of Answear SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ED Invest and Answear SA.
Diversification Opportunities for ED Invest and Answear SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EDI and Answear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ED Invest SA and Answear SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Answear SA and ED Invest 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 ED Invest SA are associated (or correlated) with Answear SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Answear SA has no effect on the direction of ED Invest i.e., ED Invest and Answear SA go up and down completely randomly.
Pair Corralation between ED Invest and Answear SA
If you would invest 576.00 in ED Invest SA on November 2, 2024 and sell it today you would earn a total of 72.00 from holding ED Invest SA or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ED Invest SA vs. Answear SA
Performance |
| Timeline |
| ED Invest SA |
| Answear SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ED Invest and Answear SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ED Invest and Answear SA
The main advantage of trading using opposite ED Invest and Answear SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ED Invest position performs unexpectedly, Answear SA 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 Answear SA will offset losses from the drop in Answear SA's long position.| ED Invest vs. Echo Investment SA | ED Invest vs. Santander Bank Polska | ED Invest vs. New Tech Venture | ED Invest vs. GreenX Metals |
| Answear SA vs. GreenX Metals | Answear SA vs. Gamedust SA | Answear SA vs. Quantum Software SA | Answear SA vs. Drago entertainment 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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