Correlation Between Embracer Group and Millicom International
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By analyzing existing cross correlation between Embracer Group AB and Millicom International Cellular, you can compare the effects of market volatilities on Embracer Group and Millicom International 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 Millicom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Millicom International.
Diversification Opportunities for Embracer Group and Millicom International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Embracer and Millicom is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Millicom International Cellula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millicom International 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 Millicom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millicom International has no effect on the direction of Embracer Group i.e., Embracer Group and Millicom International go up and down completely randomly.
Pair Corralation between Embracer Group and Millicom International
Assuming the 90 days trading horizon Embracer Group AB is expected to under-perform the Millicom International. In addition to that, Embracer Group is 1.56 times more volatile than Millicom International Cellular. It trades about -0.08 of its total potential returns per unit of risk. Millicom International Cellular is currently generating about -0.09 per unit of volatility. If you would invest 28,700 in Millicom International Cellular on September 4, 2024 and sell it today you would lose (1,300) from holding Millicom International Cellular or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Millicom International Cellula
Performance |
| Timeline |
| Embracer Group AB |
| Millicom International |
Embracer Group and Millicom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Millicom International
The main advantage of trading using opposite Embracer Group and Millicom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Millicom International 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 Millicom International will offset losses from the drop in Millicom International'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 |
| Millicom International vs. Embracer Group AB | Millicom International vs. Samhllsbyggnadsbolaget i Norden | Millicom International vs. Evolution AB | Millicom International vs. Stillfront Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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