Correlation Between Embracer Group and NetJobs Group
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By analyzing existing cross correlation between Embracer Group AB and NetJobs Group AB, you can compare the effects of market volatilities on Embracer Group and NetJobs Group 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 NetJobs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and NetJobs Group.
Diversification Opportunities for Embracer Group and NetJobs Group
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and NetJobs is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and NetJobs Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetJobs Group 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 NetJobs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetJobs Group AB has no effect on the direction of Embracer Group i.e., Embracer Group and NetJobs Group go up and down completely randomly.
Pair Corralation between Embracer Group and NetJobs Group
Assuming the 90 days trading horizon Embracer Group is expected to generate 3.19 times less return on investment than NetJobs Group. But when comparing it to its historical volatility, Embracer Group AB is 1.9 times less risky than NetJobs Group. It trades about 0.04 of its potential returns per unit of risk. NetJobs Group AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 26.00 in NetJobs Group AB on September 2, 2024 and sell it today you would earn a total of 10.00 from holding NetJobs Group AB or generate 38.46% 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. NetJobs Group AB
Performance |
| Timeline |
| Embracer Group AB |
| NetJobs Group AB |
Embracer Group and NetJobs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and NetJobs Group
The main advantage of trading using opposite Embracer Group and NetJobs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, NetJobs Group 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 NetJobs Group will offset losses from the drop in NetJobs Group'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 |
| NetJobs Group vs. Samhllsbyggnadsbolaget i Norden | NetJobs Group vs. Sinch AB | NetJobs Group vs. Embracer Group AB | NetJobs Group vs. Evolution 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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