Correlation Between Ekinops SA and Lexibook Linguistic
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Lexibook Linguistic 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 Ekinops SA and Lexibook Linguistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Lexibook Linguistic Electronic, you can compare the effects of market volatilities on Ekinops SA and Lexibook Linguistic 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 Ekinops SA with a short position of Lexibook Linguistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Lexibook Linguistic.
Diversification Opportunities for Ekinops SA and Lexibook Linguistic
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ekinops and Lexibook is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Lexibook Linguistic Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexibook Linguistic and Ekinops SA 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 Ekinops SA are associated (or correlated) with Lexibook Linguistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexibook Linguistic has no effect on the direction of Ekinops SA i.e., Ekinops SA and Lexibook Linguistic go up and down completely randomly.
Pair Corralation between Ekinops SA and Lexibook Linguistic
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Lexibook Linguistic. In addition to that, Ekinops SA is 1.03 times more volatile than Lexibook Linguistic Electronic. It trades about -0.04 of its total potential returns per unit of risk. Lexibook Linguistic Electronic is currently generating about 0.04 per unit of volatility. If you would invest 285.00 in Lexibook Linguistic Electronic on August 30, 2024 and sell it today you would earn a total of 114.00 from holding Lexibook Linguistic Electronic or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Lexibook Linguistic Electronic
Performance |
| Timeline |
| Ekinops SA |
| Lexibook Linguistic |
Ekinops SA and Lexibook Linguistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Lexibook Linguistic
The main advantage of trading using opposite Ekinops SA and Lexibook Linguistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Lexibook Linguistic 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 Lexibook Linguistic will offset losses from the drop in Lexibook Linguistic's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Lexibook Linguistic vs. Nexity | Lexibook Linguistic vs. Icade SA | Lexibook Linguistic vs. Rubis SCA | Lexibook Linguistic vs. SCOR SE |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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