Correlation Between Embracer Group and Acroud AB
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By analyzing existing cross correlation between Embracer Group AB and Acroud AB, you can compare the effects of market volatilities on Embracer Group and Acroud 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 Embracer Group with a short position of Acroud AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Acroud AB.
Diversification Opportunities for Embracer Group and Acroud AB
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Embracer and Acroud is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Acroud AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acroud AB and Embracer 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 Embracer Group AB are associated (or correlated) with Acroud AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acroud AB has no effect on the direction of Embracer Group i.e., Embracer Group and Acroud AB go up and down completely randomly.
Pair Corralation between Embracer Group and Acroud AB
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 1.05 times more return on investment than Acroud AB. However, Embracer Group is 1.05 times more volatile than Acroud AB. It trades about 0.0 of its potential returns per unit of risk. Acroud AB is currently generating about -0.06 per unit of risk. If you would invest 5,013 in Embracer Group AB on September 3, 2024 and sell it today you would lose (2,136) from holding Embracer Group AB or give up 42.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Acroud AB
Performance |
| Timeline |
| Embracer Group AB |
| Acroud AB |
Embracer Group and Acroud AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Acroud AB
The main advantage of trading using opposite Embracer Group and Acroud AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Acroud 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 Acroud AB will offset losses from the drop in Acroud AB's long position.| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group AB |
| Acroud AB vs. Kambi Group PLC | Acroud AB vs. Betsson AB | Acroud AB vs. Evolution AB | Acroud AB vs. Embracer Group 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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