Correlation Between Enersize and Cell Impact
Can any of the company-specific risk be diversified away by investing in both Enersize and Cell Impact 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 Enersize and Cell Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enersize Oy and Cell Impact AB, you can compare the effects of market volatilities on Enersize and Cell Impact 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 Enersize with a short position of Cell Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enersize and Cell Impact.
Diversification Opportunities for Enersize and Cell Impact
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enersize and Cell is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Enersize Oy and Cell Impact AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cell Impact AB and Enersize 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 Enersize Oy are associated (or correlated) with Cell Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cell Impact AB has no effect on the direction of Enersize i.e., Enersize and Cell Impact go up and down completely randomly.
Pair Corralation between Enersize and Cell Impact
Assuming the 90 days trading horizon Enersize Oy is expected to generate 0.81 times more return on investment than Cell Impact. However, Enersize Oy is 1.24 times less risky than Cell Impact. It trades about 0.0 of its potential returns per unit of risk. Cell Impact AB is currently generating about -0.03 per unit of risk. If you would invest 4.20 in Enersize Oy on August 27, 2024 and sell it today you would lose (3.41) from holding Enersize Oy or give up 81.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enersize Oy vs. Cell Impact AB
Performance |
| Timeline |
| Enersize Oy |
| Cell Impact AB |
Enersize and Cell Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enersize and Cell Impact
The main advantage of trading using opposite Enersize and Cell Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enersize position performs unexpectedly, Cell Impact 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 Cell Impact will offset losses from the drop in Cell Impact's long position.The idea behind Enersize Oy and Cell Impact AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cell Impact vs. Impact Coatings publ | Cell Impact vs. Powercell Sweden | Cell Impact vs. Oncopeptides AB | Cell Impact vs. SaltX Technology Holding |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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