Correlation Between Embracer Group and Investor
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By analyzing existing cross correlation between Embracer Group AB and Investor AB ser, you can compare the effects of market volatilities on Embracer Group and Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Investor.
Diversification Opportunities for Embracer Group and Investor
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Embracer and Investor is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Investor AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor AB ser 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB ser has no effect on the direction of Embracer Group i.e., Embracer Group and Investor go up and down completely randomly.
Pair Corralation between Embracer Group and Investor
Assuming the 90 days trading horizon Embracer Group is expected to generate 1.28 times less return on investment than Investor. In addition to that, Embracer Group is 3.83 times more volatile than Investor AB ser. It trades about 0.02 of its total potential returns per unit of risk. Investor AB ser is currently generating about 0.11 per unit of volatility. If you would invest 20,530 in Investor AB ser on August 28, 2024 and sell it today you would earn a total of 9,235 from holding Investor AB ser or generate 44.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Investor AB ser
Performance |
| Timeline |
| Embracer Group AB |
| Investor AB ser |
Embracer Group and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Investor
The main advantage of trading using opposite Embracer Group and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor'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 |
| Investor vs. Kinnevik Investment AB | Investor vs. Investment AB Latour | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Industrivarden AB ser |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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