Correlation Between Enad Global and Careium AB
Can any of the company-specific risk be diversified away by investing in both Enad Global and Careium AB 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 Enad Global and Careium AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enad Global 7 and Careium AB, you can compare the effects of market volatilities on Enad Global and Careium AB 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 Enad Global with a short position of Careium AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and Careium AB.
Diversification Opportunities for Enad Global and Careium AB
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enad and Careium is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and Careium AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Careium AB and Enad Global 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 Enad Global 7 are associated (or correlated) with Careium AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Careium AB has no effect on the direction of Enad Global i.e., Enad Global and Careium AB go up and down completely randomly.
Pair Corralation between Enad Global and Careium AB
Assuming the 90 days trading horizon Enad Global 7 is expected to under-perform the Careium AB. In addition to that, Enad Global is 2.86 times more volatile than Careium AB. It trades about -0.09 of its total potential returns per unit of risk. Careium AB is currently generating about -0.12 per unit of volatility. If you would invest 2,970 in Careium AB on October 20, 2024 and sell it today you would lose (70.00) from holding Careium AB or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enad Global 7 vs. Careium AB
Performance |
| Timeline |
| Enad Global 7 |
| Careium AB |
Enad Global and Careium AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enad Global and Careium AB
The main advantage of trading using opposite Enad Global and Careium AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enad Global position performs unexpectedly, Careium AB 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 Careium AB will offset losses from the drop in Careium AB's long position.| Enad Global vs. Stillfront Group AB | Enad Global vs. Embracer Group AB | Enad Global vs. G5 Entertainment publ | Enad Global vs. Sinch AB |
| Careium AB vs. DORO AB | Careium AB vs. Bredband2 i Skandinavien | Careium AB vs. Green Landscaping Group | Careium AB vs. Volati 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |