Correlation Between Ekinops SA and Gold Bullion
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Gold Bullion 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 Gold Bullion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Gold Bullion Securities, you can compare the effects of market volatilities on Ekinops SA and Gold Bullion 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 Gold Bullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Gold Bullion.
Diversification Opportunities for Ekinops SA and Gold Bullion
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ekinops and Gold is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Gold Bullion Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bullion Securities 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 Gold Bullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bullion Securities has no effect on the direction of Ekinops SA i.e., Ekinops SA and Gold Bullion go up and down completely randomly.
Pair Corralation between Ekinops SA and Gold Bullion
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Gold Bullion. In addition to that, Ekinops SA is 3.42 times more volatile than Gold Bullion Securities. It trades about -0.04 of its total potential returns per unit of risk. Gold Bullion Securities is currently generating about 0.13 per unit of volatility. If you would invest 19,925 in Gold Bullion Securities on September 3, 2024 and sell it today you would earn a total of 3,231 from holding Gold Bullion Securities or generate 16.22% 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. Gold Bullion Securities
Performance |
| Timeline |
| Ekinops SA |
| Gold Bullion Securities |
Ekinops SA and Gold Bullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Gold Bullion
The main advantage of trading using opposite Ekinops SA and Gold Bullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Gold Bullion 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 Gold Bullion will offset losses from the drop in Gold Bullion's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Gold Bullion vs. Amundi Index Solutions | Gold Bullion vs. Manitou BF SA | Gold Bullion vs. Ossiam Minimum Variance | Gold Bullion vs. Granite 3x LVMH |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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