Correlation Between Ekinops SA and Invesco FTSE
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Invesco FTSE 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 Invesco FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Invesco FTSE RAFI, you can compare the effects of market volatilities on Ekinops SA and Invesco FTSE 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 Invesco FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Invesco FTSE.
Diversification Opportunities for Ekinops SA and Invesco FTSE
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ekinops and Invesco is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Invesco FTSE RAFI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco FTSE RAFI 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 Invesco FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco FTSE RAFI has no effect on the direction of Ekinops SA i.e., Ekinops SA and Invesco FTSE go up and down completely randomly.
Pair Corralation between Ekinops SA and Invesco FTSE
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Invesco FTSE. In addition to that, Ekinops SA is 3.62 times more volatile than Invesco FTSE RAFI. It trades about -0.04 of its total potential returns per unit of risk. Invesco FTSE RAFI is currently generating about 0.15 per unit of volatility. If you would invest 2,865 in Invesco FTSE RAFI on September 1, 2024 and sell it today you would earn a total of 505.00 from holding Invesco FTSE RAFI or generate 17.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.69% |
| Values | Daily Returns |
Ekinops SA vs. Invesco FTSE RAFI
Performance |
| Timeline |
| Ekinops SA |
| Invesco FTSE RAFI |
Ekinops SA and Invesco FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Invesco FTSE
The main advantage of trading using opposite Ekinops SA and Invesco FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Invesco FTSE 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 Invesco FTSE will offset losses from the drop in Invesco FTSE's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Invesco FTSE vs. Invesco FTSE RAFI | Invesco FTSE vs. Invesco SP 500 | Invesco FTSE vs. Invesco Markets III | Invesco FTSE vs. Invesco Markets III |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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