Correlation Between Enea SA and MW Trade
Can any of the company-specific risk be diversified away by investing in both Enea SA and MW Trade 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 MW Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea SA and MW Trade SA, you can compare the effects of market volatilities on Enea SA and MW Trade 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 MW Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea SA and MW Trade.
Diversification Opportunities for Enea SA and MW Trade
Pay attention - limited upside
The 3 months correlation between Enea and MWT is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Enea SA and MW Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MW Trade 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 MW Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MW Trade SA has no effect on the direction of Enea SA i.e., Enea SA and MW Trade go up and down completely randomly.
Pair Corralation between Enea SA and MW Trade
Assuming the 90 days trading horizon Enea SA is expected to generate 0.34 times more return on investment than MW Trade. However, Enea SA is 2.94 times less risky than MW Trade. It trades about 0.36 of its potential returns per unit of risk. MW Trade SA is currently generating about 0.01 per unit of risk. If you would invest 1,270 in Enea SA on October 22, 2024 and sell it today you would earn a total of 75.00 from holding Enea SA or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enea SA vs. MW Trade SA
Performance |
| Timeline |
| Enea SA |
| MW Trade SA |
Enea SA and MW Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea SA and MW Trade
The main advantage of trading using opposite Enea SA and MW Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea SA position performs unexpectedly, MW Trade 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 MW Trade will offset losses from the drop in MW Trade's long position.| Enea SA vs. Noble Financials SA | Enea SA vs. Ultimate Games SA | Enea SA vs. PMPG Polskie Media | Enea SA vs. M Food SA |
| MW Trade vs. Quantum Software SA | MW Trade vs. Saule Technologies SA | MW Trade vs. SOFTWARE MANSION SPOLKA | MW Trade vs. GreenX Metals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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