Correlation Between Ellen AB and Essity AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ellen AB and Essity AB, you can compare the effects of market volatilities on Ellen AB and Essity AB 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 Ellen AB with a short position of Essity AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellen AB and Essity AB.
Diversification Opportunities for Ellen AB and Essity AB
Excellent diversification
The 3 months correlation between Ellen and Essity is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ellen AB and Essity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essity AB and Ellen AB 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 Ellen AB are associated (or correlated) with Essity AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essity AB has no effect on the direction of Ellen AB i.e., Ellen AB and Essity AB go up and down completely randomly.
Pair Corralation between Ellen AB and Essity AB
Assuming the 90 days trading horizon Ellen AB is expected to generate 0.93 times more return on investment than Essity AB. However, Ellen AB is 1.08 times less risky than Essity AB. It trades about 0.04 of its potential returns per unit of risk. Essity AB is currently generating about -0.03 per unit of risk. If you would invest 105.00 in Ellen AB on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Ellen AB or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ellen AB vs. Essity AB
Performance |
| Timeline |
| Ellen AB |
| Essity AB |
Ellen AB and Essity AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellen AB and Essity AB
The main advantage of trading using opposite Ellen AB and Essity AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellen AB position performs unexpectedly, Essity AB 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 Essity AB will offset losses from the drop in Essity AB's long position.| Ellen AB vs. Mendus AB | Ellen AB vs. JonDeTech Sensors | Ellen AB vs. Nexam Chemical Holding | Ellen AB vs. Lohilo Foods AB |
| Essity AB vs. Essity AB | Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. Industrivarden AB ser | Essity AB vs. Svenska Cellulosa Aktiebolaget |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |