Correlation Between Embracer Group and Norva24 Group
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By analyzing existing cross correlation between Embracer Group AB and Norva24 Group AB, you can compare the effects of market volatilities on Embracer Group and Norva24 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 Norva24 Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Norva24 Group.
Diversification Opportunities for Embracer Group and Norva24 Group
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Embracer and Norva24 is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Norva24 Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norva24 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 Norva24 Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norva24 Group AB has no effect on the direction of Embracer Group i.e., Embracer Group and Norva24 Group go up and down completely randomly.
Pair Corralation between Embracer Group and Norva24 Group
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 2.53 times more return on investment than Norva24 Group. However, Embracer Group is 2.53 times more volatile than Norva24 Group AB. It trades about 0.33 of its potential returns per unit of risk. Norva24 Group AB is currently generating about -0.22 per unit of risk. If you would invest 18,474 in Embracer Group AB on November 5, 2024 and sell it today you would earn a total of 4,026 from holding Embracer Group AB or generate 21.79% 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. Norva24 Group AB
Performance |
| Timeline |
| Embracer Group AB |
| Norva24 Group AB |
Embracer Group and Norva24 Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Norva24 Group
The main advantage of trading using opposite Embracer Group and Norva24 Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Norva24 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 Norva24 Group will offset losses from the drop in Norva24 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 |
| Norva24 Group vs. Spectrumone publ AB | Norva24 Group vs. Kancera AB | Norva24 Group vs. Cortus Energy AB | Norva24 Group vs. SolTech Energy 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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