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
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enad and Media is -0.3. 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 is expected to generate 20.98 times less return on investment than Media. But when comparing it to its historical volatility, Enad Global 7 is 1.62 times less risky than Media. It trades about 0.01 of its potential returns per unit of risk. Media and Games is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,118 in Media and Games on August 25, 2024 and sell it today you would earn a total of 3,412 from holding Media and Games or generate 305.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| 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. Flexion Mobile PLC | Enad Global vs. iZafe Group AB | Enad Global vs. KABE Group AB | Enad Global vs. IAR Systems Group |
| Media vs. Flexion Mobile PLC | Media vs. iZafe Group AB | Media vs. KABE Group AB | Media vs. IAR Systems 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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