Correlation Between Embracer Group and Midsummer
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By analyzing existing cross correlation between Embracer Group AB and Midsummer AB, you can compare the effects of market volatilities on Embracer Group and Midsummer 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 Midsummer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Midsummer.
Diversification Opportunities for Embracer Group and Midsummer
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Midsummer is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Midsummer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midsummer 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 Midsummer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midsummer AB has no effect on the direction of Embracer Group i.e., Embracer Group and Midsummer go up and down completely randomly.
Pair Corralation between Embracer Group and Midsummer
Assuming the 90 days trading horizon Embracer Group AB is expected to under-perform the Midsummer. But the stock apears to be less risky and, when comparing its historical volatility, Embracer Group AB is 1.89 times less risky than Midsummer. The stock trades about -0.09 of its potential returns per unit of risk. The Midsummer AB is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 99.00 in Midsummer AB on September 2, 2024 and sell it today you would earn a total of 33.00 from holding Midsummer AB or generate 33.33% 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. Midsummer AB
Performance |
| Timeline |
| Embracer Group AB |
| Midsummer AB |
Embracer Group and Midsummer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Midsummer
The main advantage of trading using opposite Embracer Group and Midsummer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Midsummer 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 Midsummer will offset losses from the drop in Midsummer'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 |
| Midsummer vs. Eolus Vind AB | Midsummer vs. Sinch AB | Midsummer vs. Embracer Group AB | Midsummer vs. Powercell Sweden |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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