Correlation Between Enad Global and Thunderful Group
Can any of the company-specific risk be diversified away by investing in both Enad Global and Thunderful 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 Thunderful 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 Thunderful Group AB, you can compare the effects of market volatilities on Enad Global and Thunderful 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 Thunderful Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and Thunderful Group.
Diversification Opportunities for Enad Global and Thunderful Group
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enad and Thunderful is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and Thunderful Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunderful 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 Thunderful Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunderful Group has no effect on the direction of Enad Global i.e., Enad Global and Thunderful Group go up and down completely randomly.
Pair Corralation between Enad Global and Thunderful Group
Assuming the 90 days trading horizon Enad Global 7 is expected to generate 0.45 times more return on investment than Thunderful Group. However, Enad Global 7 is 2.23 times less risky than Thunderful Group. It trades about -0.03 of its potential returns per unit of risk. Thunderful Group AB is currently generating about -0.21 per unit of risk. If you would invest 1,331 in Enad Global 7 on August 25, 2024 and sell it today you would lose (31.00) from holding Enad Global 7 or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Enad Global 7 vs. Thunderful Group AB
Performance |
| Timeline |
| Enad Global 7 |
| Thunderful Group |
Enad Global and Thunderful Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enad Global and Thunderful Group
The main advantage of trading using opposite Enad Global and Thunderful Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enad Global position performs unexpectedly, Thunderful 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 Thunderful Group will offset losses from the drop in Thunderful Group'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 |
| Thunderful Group vs. Stillfront Group AB | Thunderful Group vs. Embracer Group AB | Thunderful Group vs. Enad Global 7 | Thunderful Group vs. Kambi Group PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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