Correlation Between Enea AB and Realfiction Holding
Can any of the company-specific risk be diversified away by investing in both Enea AB and Realfiction 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 Realfiction 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 Realfiction Holding AB, you can compare the effects of market volatilities on Enea AB and Realfiction 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 Realfiction Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea AB and Realfiction Holding.
Diversification Opportunities for Enea AB and Realfiction Holding
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enea and Realfiction is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Enea AB and Realfiction Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realfiction 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 Realfiction Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realfiction Holding has no effect on the direction of Enea AB i.e., Enea AB and Realfiction Holding go up and down completely randomly.
Pair Corralation between Enea AB and Realfiction Holding
Assuming the 90 days trading horizon Enea AB is expected to under-perform the Realfiction Holding. But the stock apears to be less risky and, when comparing its historical volatility, Enea AB is 2.45 times less risky than Realfiction Holding. The stock trades about -0.12 of its potential returns per unit of risk. The Realfiction Holding AB is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,530 in Realfiction Holding AB on August 29, 2024 and sell it today you would lose (62.00) from holding Realfiction Holding AB or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enea AB vs. Realfiction Holding AB
Performance |
| Timeline |
| Enea AB |
| Realfiction Holding |
Enea AB and Realfiction Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea AB and Realfiction Holding
The main advantage of trading using opposite Enea AB and Realfiction Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea AB position performs unexpectedly, Realfiction 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 Realfiction Holding will offset losses from the drop in Realfiction 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 |
| Realfiction Holding vs. Sivers IMA Holding | Realfiction Holding vs. AAC Clyde Space | Realfiction Holding vs. Kancera AB | Realfiction Holding vs. Bambuser 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |