Correlation Between ENEFI Energiahatekonys and AKKO Invest
Can any of the company-specific risk be diversified away by investing in both ENEFI Energiahatekonys and AKKO Invest 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 ENEFI Energiahatekonys and AKKO Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENEFI Energiahatekonysagi Nyrt and AKKO Invest Nyrt, you can compare the effects of market volatilities on ENEFI Energiahatekonys and AKKO Invest 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 ENEFI Energiahatekonys with a short position of AKKO Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEFI Energiahatekonys and AKKO Invest.
Diversification Opportunities for ENEFI Energiahatekonys and AKKO Invest
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ENEFI and AKKO is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ENEFI Energiahatekonysagi Nyrt and AKKO Invest Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKKO Invest Nyrt and ENEFI Energiahatekonys 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 ENEFI Energiahatekonysagi Nyrt are associated (or correlated) with AKKO Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKKO Invest Nyrt has no effect on the direction of ENEFI Energiahatekonys i.e., ENEFI Energiahatekonys and AKKO Invest go up and down completely randomly.
Pair Corralation between ENEFI Energiahatekonys and AKKO Invest
Assuming the 90 days trading horizon ENEFI Energiahatekonysagi Nyrt is expected to generate 1.16 times more return on investment than AKKO Invest. However, ENEFI Energiahatekonys is 1.16 times more volatile than AKKO Invest Nyrt. It trades about 0.15 of its potential returns per unit of risk. AKKO Invest Nyrt is currently generating about -0.12 per unit of risk. If you would invest 24,400 in ENEFI Energiahatekonysagi Nyrt on November 27, 2024 and sell it today you would earn a total of 1,200 from holding ENEFI Energiahatekonysagi Nyrt or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENEFI Energiahatekonysagi Nyrt vs. AKKO Invest Nyrt
Performance |
| Timeline |
| ENEFI Energiahatekonys |
| AKKO Invest Nyrt |
ENEFI Energiahatekonys and AKKO Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENEFI Energiahatekonys and AKKO Invest
The main advantage of trading using opposite ENEFI Energiahatekonys and AKKO Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENEFI Energiahatekonys position performs unexpectedly, AKKO Invest 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 AKKO Invest will offset losses from the drop in AKKO Invest's long position.| ENEFI Energiahatekonys vs. OPUS GLOBAL Nyrt | ENEFI Energiahatekonys vs. OTP Bank Nyrt | ENEFI Energiahatekonys vs. Infineon Technologies AG | ENEFI Energiahatekonys vs. Appeninn Nyrt |
| AKKO Invest vs. NordTelekom Telecommunications Service | AKKO Invest vs. Infineon Technologies AG | AKKO Invest vs. Deutsche Bank AG | AKKO Invest vs. OTP Bank Nyrt |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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