Correlation Between Embracer Group and Vimian Group
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By analyzing existing cross correlation between Embracer Group AB and Vimian Group AB, you can compare the effects of market volatilities on Embracer Group and Vimian 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 Vimian Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Vimian Group.
Diversification Opportunities for Embracer Group and Vimian Group
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Vimian is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Vimian Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vimian 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 Vimian Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vimian Group AB has no effect on the direction of Embracer Group i.e., Embracer Group and Vimian Group go up and down completely randomly.
Pair Corralation between Embracer Group and Vimian Group
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 1.16 times more return on investment than Vimian Group. However, Embracer Group is 1.16 times more volatile than Vimian Group AB. It trades about 0.14 of its potential returns per unit of risk. Vimian Group AB is currently generating about 0.08 per unit of risk. If you would invest 13,926 in Embracer Group AB on November 3, 2024 and sell it today you would earn a total of 8,574 from holding Embracer Group AB or generate 61.57% 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. Vimian Group AB
Performance |
| Timeline |
| Embracer Group AB |
| Vimian Group AB |
Embracer Group and Vimian Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Vimian Group
The main advantage of trading using opposite Embracer Group and Vimian Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Vimian 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 Vimian Group will offset losses from the drop in Vimian 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 |
| Vimian Group vs. Swedencare publ AB | Vimian Group vs. Beijer Ref AB | Vimian Group vs. Troax Group AB | Vimian Group vs. Cint 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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