Correlation Between Ekinops SA and Moulinvest
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Moulinvest 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 Moulinvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Moulinvest, you can compare the effects of market volatilities on Ekinops SA and Moulinvest 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 Moulinvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Moulinvest.
Diversification Opportunities for Ekinops SA and Moulinvest
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekinops and Moulinvest is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Moulinvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moulinvest 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 Moulinvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moulinvest has no effect on the direction of Ekinops SA i.e., Ekinops SA and Moulinvest go up and down completely randomly.
Pair Corralation between Ekinops SA and Moulinvest
Assuming the 90 days trading horizon Ekinops SA is expected to generate 0.98 times more return on investment than Moulinvest. However, Ekinops SA is 1.02 times less risky than Moulinvest. It trades about -0.06 of its potential returns per unit of risk. Moulinvest is currently generating about -0.15 per unit of risk. If you would invest 405.00 in Ekinops SA on August 25, 2024 and sell it today you would lose (12.00) from holding Ekinops SA or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Moulinvest
Performance |
| Timeline |
| Ekinops SA |
| Moulinvest |
Ekinops SA and Moulinvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Moulinvest
The main advantage of trading using opposite Ekinops SA and Moulinvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Moulinvest 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 Moulinvest will offset losses from the drop in Moulinvest's long position.| Ekinops SA vs. Sartorius Stedim Biotech | Ekinops SA vs. Lectra SA | Ekinops SA vs. Teleperformance SE | Ekinops SA vs. Trigano SA |
| Moulinvest vs. Neurones | Moulinvest vs. Aubay Socit Anonyme | Moulinvest vs. Infotel SA | Moulinvest vs. Manitou BF SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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