Correlation Between Ekinops SA and Lacroix Group
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Lacroix Group 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 Lacroix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Lacroix Group SA, you can compare the effects of market volatilities on Ekinops SA and Lacroix Group 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 Lacroix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Lacroix Group.
Diversification Opportunities for Ekinops SA and Lacroix Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ekinops and Lacroix is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Lacroix Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lacroix Group 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 Lacroix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lacroix Group SA has no effect on the direction of Ekinops SA i.e., Ekinops SA and Lacroix Group go up and down completely randomly.
Pair Corralation between Ekinops SA and Lacroix Group
Assuming the 90 days trading horizon Ekinops SA is expected to generate 1.23 times more return on investment than Lacroix Group. However, Ekinops SA is 1.23 times more volatile than Lacroix Group SA. It trades about -0.05 of its potential returns per unit of risk. Lacroix Group SA is currently generating about -0.08 per unit of risk. If you would invest 854.00 in Ekinops SA on August 27, 2024 and sell it today you would lose (461.00) from holding Ekinops SA or give up 53.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Lacroix Group SA
Performance |
| Timeline |
| Ekinops SA |
| Lacroix Group SA |
Ekinops SA and Lacroix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Lacroix Group
The main advantage of trading using opposite Ekinops SA and Lacroix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Lacroix Group 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 Lacroix Group will offset losses from the drop in Lacroix Group's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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