Correlation Between Enea SA and Labo Print
Can any of the company-specific risk be diversified away by investing in both Enea SA and Labo Print at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Enea SA and Labo Print into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea SA and Labo Print SA, you can compare the effects of market volatilities on Enea SA and Labo Print 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 Enea SA with a short position of Labo Print. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea SA and Labo Print.
Diversification Opportunities for Enea SA and Labo Print
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enea and Labo is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Enea SA and Labo Print SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labo Print SA and Enea SA 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 Enea SA are associated (or correlated) with Labo Print. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labo Print SA has no effect on the direction of Enea SA i.e., Enea SA and Labo Print go up and down completely randomly.
Pair Corralation between Enea SA and Labo Print
Assuming the 90 days trading horizon Enea SA is expected to generate 1.28 times more return on investment than Labo Print. However, Enea SA is 1.28 times more volatile than Labo Print SA. It trades about 0.21 of its potential returns per unit of risk. Labo Print SA is currently generating about -0.12 per unit of risk. If you would invest 1,114 in Enea SA on August 31, 2024 and sell it today you would earn a total of 84.00 from holding Enea SA or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enea SA vs. Labo Print SA
Performance |
| Timeline |
| Enea SA |
| Labo Print SA |
Enea SA and Labo Print Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea SA and Labo Print
The main advantage of trading using opposite Enea SA and Labo Print positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea SA position performs unexpectedly, Labo Print 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 Labo Print will offset losses from the drop in Labo Print's long position.| Enea SA vs. PMPG Polskie Media | Enea SA vs. UniCredit SpA | Enea SA vs. Drago entertainment SA | Enea SA vs. mBank SA |
| Labo Print vs. Esotiq Henderson SA | Labo Print vs. Echo Investment SA | Labo Print vs. Asseco South Eastern | Labo Print vs. CFI Holding SA |
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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