Correlation Between Ekinops SA and Poxel SA
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Poxel SA 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 Poxel SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Poxel SA, you can compare the effects of market volatilities on Ekinops SA and Poxel SA 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 Poxel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Poxel SA.
Diversification Opportunities for Ekinops SA and Poxel SA
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekinops and Poxel is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Poxel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poxel 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 Poxel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poxel SA has no effect on the direction of Ekinops SA i.e., Ekinops SA and Poxel SA go up and down completely randomly.
Pair Corralation between Ekinops SA and Poxel SA
Assuming the 90 days trading horizon Ekinops SA is expected to generate 0.75 times more return on investment than Poxel SA. However, Ekinops SA is 1.34 times less risky than Poxel SA. It trades about -0.25 of its potential returns per unit of risk. Poxel SA is currently generating about -0.6 per unit of risk. If you would invest 393.00 in Ekinops SA on September 1, 2024 and sell it today you would lose (49.00) from holding Ekinops SA or give up 12.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Poxel SA
Performance |
| Timeline |
| Ekinops SA |
| Poxel SA |
Ekinops SA and Poxel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Poxel SA
The main advantage of trading using opposite Ekinops SA and Poxel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Poxel SA 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 Poxel SA will offset losses from the drop in Poxel SA'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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