Correlation Between Embracer Group and Smart Eye
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By analyzing existing cross correlation between Embracer Group AB and Smart Eye AB, you can compare the effects of market volatilities on Embracer Group and Smart Eye 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 Smart Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Smart Eye.
Diversification Opportunities for Embracer Group and Smart Eye
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Embracer and Smart is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Smart Eye AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Eye 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 Smart Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Eye AB has no effect on the direction of Embracer Group i.e., Embracer Group and Smart Eye go up and down completely randomly.
Pair Corralation between Embracer Group and Smart Eye
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.96 times more return on investment than Smart Eye. However, Embracer Group AB is 1.04 times less risky than Smart Eye. It trades about 0.04 of its potential returns per unit of risk. Smart Eye AB is currently generating about 0.01 per unit of risk. If you would invest 2,220 in Embracer Group AB on August 25, 2024 and sell it today you would earn a total of 535.00 from holding Embracer Group AB or generate 24.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Smart Eye AB
Performance |
| Timeline |
| Embracer Group AB |
| Smart Eye AB |
Embracer Group and Smart Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Smart Eye
The main advantage of trading using opposite Embracer Group and Smart Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Smart Eye 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 Smart Eye will offset losses from the drop in Smart Eye's long position.| Embracer Group vs. Flexion Mobile PLC | Embracer Group vs. iZafe Group AB | Embracer Group vs. KABE Group AB | Embracer Group vs. IAR Systems Group |
| Smart Eye vs. Lifco AB | Smart Eye vs. Lagercrantz Group AB | Smart Eye vs. Addtech AB | Smart Eye vs. Instalco Intressenter 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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