Correlation Between Embracer Group and Zwipe AS
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By analyzing existing cross correlation between Embracer Group AB and Zwipe AS, you can compare the effects of market volatilities on Embracer Group and Zwipe AS 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 Zwipe AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Zwipe AS.
Diversification Opportunities for Embracer Group and Zwipe AS
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Embracer and Zwipe is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Zwipe AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwipe AS 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 Zwipe AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwipe AS has no effect on the direction of Embracer Group i.e., Embracer Group and Zwipe AS go up and down completely randomly.
Pair Corralation between Embracer Group and Zwipe AS
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.47 times more return on investment than Zwipe AS. However, Embracer Group AB is 2.15 times less risky than Zwipe AS. It trades about -0.03 of its potential returns per unit of risk. Zwipe AS is currently generating about -0.31 per unit of risk. If you would invest 3,054 in Embracer Group AB on August 29, 2024 and sell it today you would lose (110.00) from holding Embracer Group AB or give up 3.6% 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. Zwipe AS
Performance |
| Timeline |
| Embracer Group AB |
| Zwipe AS |
Embracer Group and Zwipe AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Zwipe AS
The main advantage of trading using opposite Embracer Group and Zwipe AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Zwipe AS 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 Zwipe AS will offset losses from the drop in Zwipe AS's long position.| Embracer Group vs. Flexion Mobile PLC | Embracer Group vs. Stillfront Group AB | Embracer Group vs. iZafe Group AB | Embracer Group vs. KABE Group AB |
| Zwipe AS vs. Goobit Group AB | Zwipe AS vs. CoinShares International | Zwipe AS vs. Zignsec AB | Zwipe AS vs. Checkin 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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