Correlation Between Ekinops SA and Spineguard
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Spineguard 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 Spineguard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Spineguard, you can compare the effects of market volatilities on Ekinops SA and Spineguard 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 Spineguard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Spineguard.
Diversification Opportunities for Ekinops SA and Spineguard
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ekinops and Spineguard is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Spineguard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spineguard 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 Spineguard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spineguard has no effect on the direction of Ekinops SA i.e., Ekinops SA and Spineguard go up and down completely randomly.
Pair Corralation between Ekinops SA and Spineguard
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Spineguard. But the stock apears to be less risky and, when comparing its historical volatility, Ekinops SA is 2.26 times less risky than Spineguard. The stock trades about -0.05 of its potential returns per unit of risk. The Spineguard is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 54.00 in Spineguard on September 12, 2024 and sell it today you would lose (31.00) from holding Spineguard or give up 57.41% 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. Spineguard
Performance |
| Timeline |
| Ekinops SA |
| Spineguard |
Ekinops SA and Spineguard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Spineguard
The main advantage of trading using opposite Ekinops SA and Spineguard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Spineguard 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 Spineguard will offset losses from the drop in Spineguard's long position.| Ekinops SA vs. Groupe Guillin SA | Ekinops SA vs. Stef SA | Ekinops SA vs. SA Catana Group | Ekinops SA vs. Jacquet Metal Service |
| Spineguard vs. Gensight Biologics SA | Spineguard vs. Innate Pharma | Spineguard vs. Poxel SA | Spineguard vs. Nanobiotix 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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