Correlation Between Ekinops SA and Multi Units
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Multi Units 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 Multi Units into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Multi Units France, you can compare the effects of market volatilities on Ekinops SA and Multi Units 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 Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Multi Units.
Diversification Opportunities for Ekinops SA and Multi Units
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ekinops and Multi is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Multi Units France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units France 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 Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units France has no effect on the direction of Ekinops SA i.e., Ekinops SA and Multi Units go up and down completely randomly.
Pair Corralation between Ekinops SA and Multi Units
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Multi Units. In addition to that, Ekinops SA is 3.1 times more volatile than Multi Units France. It trades about -0.05 of its total potential returns per unit of risk. Multi Units France is currently generating about 0.05 per unit of volatility. If you would invest 1,070 in Multi Units France on September 12, 2024 and sell it today you would earn a total of 232.00 from holding Multi Units France or generate 21.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Multi Units France
Performance |
| Timeline |
| Ekinops SA |
| Multi Units France |
Ekinops SA and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Multi Units
The main advantage of trading using opposite Ekinops SA and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' 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 |
| Multi Units vs. Lyxor UCITS MSCI | Multi Units vs. Lyxor UCITS Stoxx | Multi Units vs. Multi Units France | Multi Units vs. Lyxor MSCI Brazil |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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