Correlation Between Enea SA and New Tech
Can any of the company-specific risk be diversified away by investing in both Enea SA and New Tech 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 New Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea SA and New Tech Capital, you can compare the effects of market volatilities on Enea SA and New Tech 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 New Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea SA and New Tech.
Diversification Opportunities for Enea SA and New Tech
Very good diversification
The 3 months correlation between Enea and New is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Enea SA and New Tech Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Tech Capital 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 New Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Tech Capital has no effect on the direction of Enea SA i.e., Enea SA and New Tech go up and down completely randomly.
Pair Corralation between Enea SA and New Tech
Assuming the 90 days trading horizon Enea SA is expected to generate 0.79 times more return on investment than New Tech. However, Enea SA is 1.27 times less risky than New Tech. It trades about 0.2 of its potential returns per unit of risk. New Tech Capital is currently generating about -0.3 per unit of risk. If you would invest 1,120 in Enea SA on August 29, 2024 and sell it today you would earn a total of 84.00 from holding Enea SA or generate 7.5% 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. New Tech Capital
Performance |
| Timeline |
| Enea SA |
| New Tech Capital |
Enea SA and New Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea SA and New Tech
The main advantage of trading using opposite Enea SA and New Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea SA position performs unexpectedly, New Tech 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 New Tech will offset losses from the drop in New Tech's long position.| Enea SA vs. 3R Games SA | Enea SA vs. Pyramid Games SA | Enea SA vs. GreenX Metals | Enea SA vs. Movie Games SA |
| New Tech vs. Movie Games SA | New Tech vs. Marie Brizard Wine | New Tech vs. Igoria Trade SA | New Tech vs. Mlk Foods Public |
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 CEOs Directory module to screen CEOs from public companies around the world.
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