Correlation Between Ekinops SA and Media 6
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Media 6 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 Media 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Media 6 SA, you can compare the effects of market volatilities on Ekinops SA and Media 6 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 Media 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Media 6.
Diversification Opportunities for Ekinops SA and Media 6
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ekinops and Media is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Media 6 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media 6 SA 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 Media 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media 6 SA has no effect on the direction of Ekinops SA i.e., Ekinops SA and Media 6 go up and down completely randomly.
Pair Corralation between Ekinops SA and Media 6
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Media 6. But the stock apears to be less risky and, when comparing its historical volatility, Ekinops SA is 2.44 times less risky than Media 6. The stock trades about -0.18 of its potential returns per unit of risk. The Media 6 SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Media 6 SA on August 30, 2024 and sell it today you would earn a total of 90.00 from holding Media 6 SA or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ekinops SA vs. Media 6 SA
Performance |
| Timeline |
| Ekinops SA |
| Media 6 SA |
Ekinops SA and Media 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Media 6
The main advantage of trading using opposite Ekinops SA and Media 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Media 6 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 Media 6 will offset losses from the drop in Media 6's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Media 6 vs. Lacroix Group SA | Media 6 vs. Fiducial Office Solutions | Media 6 vs. ACTEOS SA | Media 6 vs. Passat Socit Anonyme |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |