Correlation Between Enad Global and Stillfront Group
Can any of the company-specific risk be diversified away by investing in both Enad Global and Stillfront 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 Stillfront 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 Stillfront Group AB, you can compare the effects of market volatilities on Enad Global and Stillfront 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 Stillfront Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and Stillfront Group.
Diversification Opportunities for Enad Global and Stillfront Group
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enad and Stillfront is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and Stillfront Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillfront Group 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 Stillfront Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillfront Group has no effect on the direction of Enad Global i.e., Enad Global and Stillfront Group go up and down completely randomly.
Pair Corralation between Enad Global and Stillfront Group
Assuming the 90 days trading horizon Enad Global 7 is expected to generate 0.79 times more return on investment than Stillfront Group. However, Enad Global 7 is 1.26 times less risky than Stillfront Group. It trades about 0.02 of its potential returns per unit of risk. Stillfront Group AB is currently generating about -0.03 per unit of risk. If you would invest 1,334 in Enad Global 7 on November 3, 2024 and sell it today you would earn a total of 29.00 from holding Enad Global 7 or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enad Global 7 vs. Stillfront Group AB
Performance |
| Timeline |
| Enad Global 7 |
| Stillfront Group |
Enad Global and Stillfront Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enad Global and Stillfront Group
The main advantage of trading using opposite Enad Global and Stillfront Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enad Global position performs unexpectedly, Stillfront 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 Stillfront Group will offset losses from the drop in Stillfront 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 |
| Stillfront Group vs. Embracer Group AB | Stillfront Group vs. Sinch AB | Stillfront Group vs. Paradox Interactive AB | Stillfront Group vs. Evolution 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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