Correlation Between Embellence Group and Simris Alg
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By analyzing existing cross correlation between Embellence Group AB and Simris Alg AB, you can compare the effects of market volatilities on Embellence Group and Simris Alg 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 Embellence Group with a short position of Simris Alg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embellence Group and Simris Alg.
Diversification Opportunities for Embellence Group and Simris Alg
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Embellence and Simris is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Embellence Group AB and Simris Alg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simris Alg AB and Embellence Group 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 Embellence Group AB are associated (or correlated) with Simris Alg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simris Alg AB has no effect on the direction of Embellence Group i.e., Embellence Group and Simris Alg go up and down completely randomly.
Pair Corralation between Embellence Group and Simris Alg
Assuming the 90 days trading horizon Embellence Group AB is expected to generate 0.33 times more return on investment than Simris Alg. However, Embellence Group AB is 3.0 times less risky than Simris Alg. It trades about 0.05 of its potential returns per unit of risk. Simris Alg AB is currently generating about -0.01 per unit of risk. If you would invest 1,987 in Embellence Group AB on September 3, 2024 and sell it today you would earn a total of 1,043 from holding Embellence Group AB or generate 52.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embellence Group AB vs. Simris Alg AB
Performance |
| Timeline |
| Embellence Group |
| Simris Alg AB |
Embellence Group and Simris Alg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embellence Group and Simris Alg
The main advantage of trading using opposite Embellence Group and Simris Alg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embellence Group position performs unexpectedly, Simris Alg 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 Simris Alg will offset losses from the drop in Simris Alg's long position.| Embellence Group vs. Rugvista Group AB | Embellence Group vs. Nimbus Group AB | Embellence Group vs. Desenio Group AB | Embellence Group vs. Idun Industrier AB |
| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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