Correlation Between Enea SA and Live Motion
Can any of the company-specific risk be diversified away by investing in both Enea SA and Live Motion 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 Live Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea SA and Live Motion Games, you can compare the effects of market volatilities on Enea SA and Live Motion 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 Live Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea SA and Live Motion.
Diversification Opportunities for Enea SA and Live Motion
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enea and Live is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Enea SA and Live Motion Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Motion Games 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 Live Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Motion Games has no effect on the direction of Enea SA i.e., Enea SA and Live Motion go up and down completely randomly.
Pair Corralation between Enea SA and Live Motion
Assuming the 90 days trading horizon Enea SA is expected to generate 0.6 times more return on investment than Live Motion. However, Enea SA is 1.66 times less risky than Live Motion. It trades about 0.11 of its potential returns per unit of risk. Live Motion Games is currently generating about -0.47 per unit of risk. If you would invest 1,114 in Enea SA on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Enea SA or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Enea SA vs. Live Motion Games
Performance |
| Timeline |
| Enea SA |
| Live Motion Games |
Enea SA and Live Motion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea SA and Live Motion
The main advantage of trading using opposite Enea SA and Live Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea SA position performs unexpectedly, Live Motion 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 Live Motion will offset losses from the drop in Live Motion's long position.| Enea SA vs. Live Motion Games | Enea SA vs. True Games Syndicate | Enea SA vs. mBank SA | Enea SA vs. Santander Bank Polska |
| Live Motion vs. Saule Technologies SA | Live Motion vs. LSI Software SA | Live Motion vs. Investment Friends Capital | Live Motion vs. Kool2play 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |