Correlation Between Enad Global and Cell Impact
Can any of the company-specific risk be diversified away by investing in both Enad Global and Cell Impact 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 Cell Impact 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 Cell Impact AB, you can compare the effects of market volatilities on Enad Global and Cell Impact 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 Cell Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and Cell Impact.
Diversification Opportunities for Enad Global and Cell Impact
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enad and Cell is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and Cell Impact AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cell Impact 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 Cell Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cell Impact AB has no effect on the direction of Enad Global i.e., Enad Global and Cell Impact go up and down completely randomly.
Pair Corralation between Enad Global and Cell Impact
Assuming the 90 days trading horizon Enad Global 7 is expected to generate 0.3 times more return on investment than Cell Impact. However, Enad Global 7 is 3.3 times less risky than Cell Impact. It trades about -0.03 of its potential returns per unit of risk. Cell Impact AB is currently generating about -0.03 per unit of risk. If you would invest 2,871 in Enad Global 7 on October 12, 2024 and sell it today you would lose (1,449) from holding Enad Global 7 or give up 50.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Enad Global 7 vs. Cell Impact AB
Performance |
Timeline |
Enad Global 7 |
Cell Impact AB |
Enad Global and Cell Impact Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enad Global and Cell Impact
The main advantage of trading using opposite Enad Global and Cell Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enad Global position performs unexpectedly, Cell Impact 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 Cell Impact will offset losses from the drop in Cell Impact'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 |
Cell Impact vs. Humble Group AB | Cell Impact vs. Enad Global 7 | Cell Impact vs. Goodbye Kansas Group | Cell Impact vs. KABE Group 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |