Correlation Between Embracer Group and Adventure Box
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By analyzing existing cross correlation between Embracer Group AB and Adventure Box Technology, you can compare the effects of market volatilities on Embracer Group and Adventure Box 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 Adventure Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Adventure Box.
Diversification Opportunities for Embracer Group and Adventure Box
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Embracer and Adventure is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology 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 Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of Embracer Group i.e., Embracer Group and Adventure Box go up and down completely randomly.
Pair Corralation between Embracer Group and Adventure Box
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.44 times more return on investment than Adventure Box. However, Embracer Group AB is 2.27 times less risky than Adventure Box. It trades about 0.37 of its potential returns per unit of risk. Adventure Box Technology is currently generating about -0.1 per unit of risk. If you would invest 2,682 in Embracer Group AB on September 13, 2024 and sell it today you would earn a total of 618.00 from holding Embracer Group AB or generate 23.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Adventure Box Technology
Performance |
| Timeline |
| Embracer Group AB |
| Adventure Box Technology |
Embracer Group and Adventure Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Adventure Box
The main advantage of trading using opposite Embracer Group and Adventure Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Adventure Box 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 Adventure Box will offset losses from the drop in Adventure Box'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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