Correlation Between Embracer Group and Zignsec AB
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By analyzing existing cross correlation between Embracer Group AB and Zignsec AB, you can compare the effects of market volatilities on Embracer Group and Zignsec AB 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 Zignsec AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Zignsec AB.
Diversification Opportunities for Embracer Group and Zignsec AB
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Embracer and Zignsec is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Zignsec AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zignsec 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 Zignsec AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zignsec AB has no effect on the direction of Embracer Group i.e., Embracer Group and Zignsec AB go up and down completely randomly.
Pair Corralation between Embracer Group and Zignsec AB
Assuming the 90 days trading horizon Embracer Group AB is expected to under-perform the Zignsec AB. In addition to that, Embracer Group is 1.58 times more volatile than Zignsec AB. It trades about -0.1 of its total potential returns per unit of risk. Zignsec AB is currently generating about 0.08 per unit of volatility. If you would invest 131.00 in Zignsec AB on August 26, 2024 and sell it today you would earn a total of 4.00 from holding Zignsec AB or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Zignsec AB
Performance |
| Timeline |
| Embracer Group AB |
| Zignsec AB |
Embracer Group and Zignsec AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Zignsec AB
The main advantage of trading using opposite Embracer Group and Zignsec AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Zignsec AB 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 Zignsec AB will offset losses from the drop in Zignsec AB'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 |
| Zignsec AB vs. Smart Eye AB | Zignsec AB vs. Embracer Group AB | Zignsec AB vs. Zwipe AS | Zignsec AB vs. Sinch 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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