Correlation Between Enad Global and Media
Can any of the company-specific risk be diversified away by investing in both Enad Global and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Enad Global and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and Media.
Diversification Opportunities for Enad Global and Media
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enad and Media is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Enad Global i.e., Enad Global and Media go up and down completely randomly.
Pair Corralation between Enad Global and Media
Assuming the 90 days trading horizon Enad Global 7 is expected to under-perform the Media. But the stock apears to be less risky and, when comparing its historical volatility, Enad Global 7 is 1.62 times less risky than Media. The stock trades about -0.29 of its potential returns per unit of risk. The Media and Games is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,640 in Media and Games on November 3, 2024 and sell it today you would lose (145.00) from holding Media and Games or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enad Global 7 vs. Media and Games
Performance |
| Timeline |
| Enad Global 7 |
| Media and Games |
Enad Global and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enad Global and Media
The main advantage of trading using opposite Enad Global and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enad Global position performs unexpectedly, Media 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 Media will offset losses from the drop in Media'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 |
| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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