Correlation Between Embracer Group and Enad Global
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By analyzing existing cross correlation between Embracer Group AB and Enad Global 7, you can compare the effects of market volatilities on Embracer Group and Enad Global 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 Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Enad Global.
Diversification Opportunities for Embracer Group and Enad Global
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Enad is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Enad Global 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enad Global 7 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 Enad Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enad Global 7 has no effect on the direction of Embracer Group i.e., Embracer Group and Enad Global go up and down completely randomly.
Pair Corralation between Embracer Group and Enad Global
Assuming the 90 days trading horizon Embracer Group AB is expected to under-perform the Enad Global. In addition to that, Embracer Group is 1.21 times more volatile than Enad Global 7. It trades about -0.03 of its total potential returns per unit of risk. Enad Global 7 is currently generating about 0.04 per unit of volatility. If you would invest 1,365 in Enad Global 7 on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Enad Global 7 or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Enad Global 7
Performance |
| Timeline |
| Embracer Group AB |
| Enad Global 7 |
Embracer Group and Enad Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Enad Global
The main advantage of trading using opposite Embracer Group and Enad Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Enad Global 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 Enad Global will offset losses from the drop in Enad Global'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 |
| Enad Global vs. Flexion Mobile PLC | Enad Global vs. iZafe Group AB | Enad Global vs. KABE Group AB | Enad Global vs. IAR Systems Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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