Correlation Between Enea AB and Careium AB
Can any of the company-specific risk be diversified away by investing in both Enea AB and Careium AB 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 Careium AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea AB and Careium AB, you can compare the effects of market volatilities on Enea AB and Careium AB 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 Careium AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea AB and Careium AB.
Diversification Opportunities for Enea AB and Careium AB
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enea and Careium is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Enea AB and Careium AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Careium AB 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 Careium AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Careium AB has no effect on the direction of Enea AB i.e., Enea AB and Careium AB go up and down completely randomly.
Pair Corralation between Enea AB and Careium AB
Assuming the 90 days trading horizon Enea AB is expected to generate 2.04 times more return on investment than Careium AB. However, Enea AB is 2.04 times more volatile than Careium AB. It trades about 0.13 of its potential returns per unit of risk. Careium AB is currently generating about -0.3 per unit of risk. If you would invest 9,750 in Enea AB on October 22, 2024 and sell it today you would earn a total of 450.00 from holding Enea AB or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enea AB vs. Careium AB
Performance |
| Timeline |
| Enea AB |
| Careium AB |
Enea AB and Careium AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea AB and Careium AB
The main advantage of trading using opposite Enea AB and Careium AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea AB position performs unexpectedly, Careium AB 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 Careium AB will offset losses from the drop in Careium AB'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 |
| Careium AB vs. DORO AB | Careium AB vs. Bredband2 i Skandinavien | Careium AB vs. Green Landscaping Group | Careium AB vs. Volati AB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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