Correlation Between Ellomay Capital and Brother Industries
Can any of the company-specific risk be diversified away by investing in both Ellomay Capital and Brother Industries 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 Ellomay Capital and Brother Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellomay Capital and Brother Industries, you can compare the effects of market volatilities on Ellomay Capital and Brother Industries 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 Ellomay Capital with a short position of Brother Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellomay Capital and Brother Industries.
Diversification Opportunities for Ellomay Capital and Brother Industries
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ellomay and Brother is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital and Brother Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brother Industries and Ellomay Capital 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 Ellomay Capital are associated (or correlated) with Brother Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brother Industries has no effect on the direction of Ellomay Capital i.e., Ellomay Capital and Brother Industries go up and down completely randomly.
Pair Corralation between Ellomay Capital and Brother Industries
Given the investment horizon of 90 days Ellomay Capital is expected to generate 1.5 times less return on investment than Brother Industries. In addition to that, Ellomay Capital is 1.11 times more volatile than Brother Industries. It trades about 0.19 of its total potential returns per unit of risk. Brother Industries is currently generating about 0.31 per unit of volatility. If you would invest 1,605 in Brother Industries on October 20, 2024 and sell it today you would earn a total of 235.00 from holding Brother Industries or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Ellomay Capital vs. Brother Industries
Performance |
| Timeline |
| Ellomay Capital |
| Brother Industries |
Ellomay Capital and Brother Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellomay Capital and Brother Industries
The main advantage of trading using opposite Ellomay Capital and Brother Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital position performs unexpectedly, Brother Industries 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 Brother Industries will offset losses from the drop in Brother Industries' long position.| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Renew Energy Global | Ellomay Capital vs. Clearway Energy Class | Ellomay Capital vs. Excelerate Energy |
| Brother Industries vs. Allient | Brother Industries vs. Kingboard Chemical Holdings | Brother Industries vs. NETGEAR | Brother Industries vs. ServiceNow |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |