Correlation Between Enea SA and M Food
Can any of the company-specific risk be diversified away by investing in both Enea SA and M Food 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 M Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea SA and M Food SA, you can compare the effects of market volatilities on Enea SA and M Food 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 M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea SA and M Food.
Diversification Opportunities for Enea SA and M Food
Excellent diversification
The 3 months correlation between Enea and MFD is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Enea SA and M Food SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Food 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 M Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Food SA has no effect on the direction of Enea SA i.e., Enea SA and M Food go up and down completely randomly.
Pair Corralation between Enea SA and M Food
Assuming the 90 days trading horizon Enea SA is expected to generate 0.45 times more return on investment than M Food. However, Enea SA is 2.21 times less risky than M Food. It trades about 0.21 of its potential returns per unit of risk. M Food SA is currently generating about -0.19 per unit of risk. If you would invest 1,105 in Enea SA on October 24, 2024 and sell it today you would earn a total of 265.00 from holding Enea SA or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.21% |
| Values | Daily Returns |
Enea SA vs. M Food SA
Performance |
| Timeline |
| Enea SA |
| M Food SA |
Enea SA and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea SA and M Food
The main advantage of trading using opposite Enea SA and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea SA position performs unexpectedly, M Food 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 M Food will offset losses from the drop in M Food's long position.| Enea SA vs. X Trade Brokers | Enea SA vs. Santander Bank Polska | Enea SA vs. Movie Games SA | Enea SA vs. Centrum Finansowe Banku |
| M Food vs. Skyline Investment SA | M Food vs. TEN SQUARE GAMES | M Food vs. Movie Games SA | M Food vs. Saule Technologies 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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