Correlation Between Enea AB and Enzymatica Publ
Can any of the company-specific risk be diversified away by investing in both Enea AB and Enzymatica Publ 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 Enzymatica Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea AB and Enzymatica publ AB, you can compare the effects of market volatilities on Enea AB and Enzymatica Publ 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 Enzymatica Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea AB and Enzymatica Publ.
Diversification Opportunities for Enea AB and Enzymatica Publ
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enea and Enzymatica is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Enea AB and Enzymatica publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enzymatica publ 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 Enzymatica Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enzymatica publ AB has no effect on the direction of Enea AB i.e., Enea AB and Enzymatica Publ go up and down completely randomly.
Pair Corralation between Enea AB and Enzymatica Publ
Assuming the 90 days trading horizon Enea AB is expected to generate 0.58 times more return on investment than Enzymatica Publ. However, Enea AB is 1.72 times less risky than Enzymatica Publ. It trades about 0.19 of its potential returns per unit of risk. Enzymatica publ AB is currently generating about -0.13 per unit of risk. If you would invest 10,060 in Enea AB on September 12, 2024 and sell it today you would earn a total of 700.00 from holding Enea AB or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enea AB vs. Enzymatica publ AB
Performance |
| Timeline |
| Enea AB |
| Enzymatica publ AB |
Enea AB and Enzymatica Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea AB and Enzymatica Publ
The main advantage of trading using opposite Enea AB and Enzymatica Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea AB position performs unexpectedly, Enzymatica Publ 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 Enzymatica Publ will offset losses from the drop in Enzymatica Publ's long position.| Enea AB vs. Enzymatica publ AB | Enea AB vs. Polygiene AB | Enea AB vs. Sprint Bioscience AB | Enea AB vs. XMReality AB |
| Enzymatica Publ vs. Oncopeptides AB | Enzymatica Publ vs. Diamyd Medical AB | Enzymatica Publ vs. Kancera AB | Enzymatica Publ vs. Bonesupport Holding 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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