Correlation Between Enad Global and KABE Group
Can any of the company-specific risk be diversified away by investing in both Enad Global and KABE Group 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 KABE Group 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 KABE Group AB, you can compare the effects of market volatilities on Enad Global and KABE Group 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 KABE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and KABE Group.
Diversification Opportunities for Enad Global and KABE Group
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enad and KABE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and KABE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KABE Group 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 KABE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KABE Group AB has no effect on the direction of Enad Global i.e., Enad Global and KABE Group go up and down completely randomly.
Pair Corralation between Enad Global and KABE Group
Assuming the 90 days trading horizon Enad Global 7 is expected to under-perform the KABE Group. In addition to that, Enad Global is 2.51 times more volatile than KABE Group AB. It trades about -0.26 of its total potential returns per unit of risk. KABE Group AB is currently generating about 0.12 per unit of volatility. If you would invest 30,000 in KABE Group AB on October 30, 2024 and sell it today you would earn a total of 800.00 from holding KABE Group AB or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enad Global 7 vs. KABE Group AB
Performance |
| Timeline |
| Enad Global 7 |
| KABE Group AB |
Enad Global and KABE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enad Global and KABE Group
The main advantage of trading using opposite Enad Global and KABE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enad Global position performs unexpectedly, KABE Group 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 KABE Group will offset losses from the drop in KABE Group'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 |
| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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