Correlation Between Enea AB and Bonesupport Holding
Can any of the company-specific risk be diversified away by investing in both Enea AB and Bonesupport Holding 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 AB and Bonesupport Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea AB and Bonesupport Holding AB, you can compare the effects of market volatilities on Enea AB and Bonesupport Holding 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 AB with a short position of Bonesupport Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea AB and Bonesupport Holding.
Diversification Opportunities for Enea AB and Bonesupport Holding
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enea and Bonesupport is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Enea AB and Bonesupport Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonesupport Holding and Enea AB 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 AB are associated (or correlated) with Bonesupport Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonesupport Holding has no effect on the direction of Enea AB i.e., Enea AB and Bonesupport Holding go up and down completely randomly.
Pair Corralation between Enea AB and Bonesupport Holding
Assuming the 90 days trading horizon Enea AB is expected to generate 7.44 times less return on investment than Bonesupport Holding. In addition to that, Enea AB is 1.15 times more volatile than Bonesupport Holding AB. It trades about 0.01 of its total potential returns per unit of risk. Bonesupport Holding AB is currently generating about 0.12 per unit of volatility. If you would invest 9,100 in Bonesupport Holding AB on November 5, 2024 and sell it today you would earn a total of 25,740 from holding Bonesupport Holding AB or generate 282.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Enea AB vs. Bonesupport Holding AB
Performance |
| Timeline |
| Enea AB |
| Bonesupport Holding |
Enea AB and Bonesupport Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea AB and Bonesupport Holding
The main advantage of trading using opposite Enea AB and Bonesupport Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea AB position performs unexpectedly, Bonesupport Holding 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 Bonesupport Holding will offset losses from the drop in Bonesupport Holding's long position.| Enea AB vs. Know IT AB | Enea AB vs. Proact IT Group | Enea AB vs. Hexatronic Group AB | Enea AB vs. Inwido AB |
| Bonesupport Holding vs. BioArctic AB | Bonesupport Holding vs. Camurus AB | Bonesupport Holding vs. Xvivo Perfusion AB | Bonesupport Holding vs. Surgical Science Sweden |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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