Correlation Between Embracer Group and Stillfront Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between Embracer Group AB and Stillfront Group AB, you can compare the effects of market volatilities on Embracer Group and Stillfront 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 Stillfront Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Stillfront Group.
Diversification Opportunities for Embracer Group and Stillfront Group
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Stillfront is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Stillfront Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillfront Group 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 Stillfront Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillfront Group has no effect on the direction of Embracer Group i.e., Embracer Group and Stillfront Group go up and down completely randomly.
Pair Corralation between Embracer Group and Stillfront Group
Assuming the 90 days trading horizon Embracer Group AB is expected to under-perform the Stillfront Group. In addition to that, Embracer Group is 1.17 times more volatile than Stillfront Group AB. It trades about -0.03 of its total potential returns per unit of risk. Stillfront Group AB is currently generating about -0.03 per unit of volatility. If you would invest 749.00 in Stillfront Group AB on August 29, 2024 and sell it today you would lose (19.00) from holding Stillfront Group AB or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Stillfront Group AB
Performance |
| Timeline |
| Embracer Group AB |
| Stillfront Group |
Embracer Group and Stillfront Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Stillfront Group
The main advantage of trading using opposite Embracer Group and Stillfront Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Stillfront 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 Stillfront Group will offset losses from the drop in Stillfront 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 |
| Stillfront Group vs. Embracer Group AB | Stillfront Group vs. Sinch AB | Stillfront Group vs. Paradox Interactive AB | Stillfront 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |