Correlation Between AB Electrolux and Episurf Medical
Can any of the company-specific risk be diversified away by investing in both AB Electrolux and Episurf Medical 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 AB Electrolux and Episurf Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Electrolux and Episurf Medical AB, you can compare the effects of market volatilities on AB Electrolux and Episurf Medical 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 AB Electrolux with a short position of Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Electrolux and Episurf Medical.
Diversification Opportunities for AB Electrolux and Episurf Medical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ELUX-B and Episurf is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding AB Electrolux and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical AB and AB Electrolux 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 AB Electrolux are associated (or correlated) with Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of AB Electrolux i.e., AB Electrolux and Episurf Medical go up and down completely randomly.
Pair Corralation between AB Electrolux and Episurf Medical
Assuming the 90 days trading horizon AB Electrolux is expected to generate 0.5 times more return on investment than Episurf Medical. However, AB Electrolux is 1.99 times less risky than Episurf Medical. It trades about 0.17 of its potential returns per unit of risk. Episurf Medical AB is currently generating about -0.06 per unit of risk. If you would invest 8,848 in AB Electrolux on November 9, 2024 and sell it today you would earn a total of 708.00 from holding AB Electrolux or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Electrolux vs. Episurf Medical AB
Performance |
| Timeline |
| AB Electrolux |
| Episurf Medical AB |
AB Electrolux and Episurf Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Electrolux and Episurf Medical
The main advantage of trading using opposite AB Electrolux and Episurf Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Electrolux position performs unexpectedly, Episurf Medical 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 Episurf Medical will offset losses from the drop in Episurf Medical's long position.| AB Electrolux vs. AB SKF | AB Electrolux vs. Tele2 AB | AB Electrolux vs. Sandvik AB | AB Electrolux vs. Skanska AB |
| Episurf Medical vs. BioInvent International AB | Episurf Medical vs. Cantargia AB | Episurf Medical vs. Bonesupport Holding AB | Episurf Medical vs. Bactiguard Holding AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |