Correlation Between Enersize and Doxa AB
Can any of the company-specific risk be diversified away by investing in both Enersize and Doxa 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 Enersize and Doxa AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enersize Oy and Doxa AB, you can compare the effects of market volatilities on Enersize and Doxa 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 Enersize with a short position of Doxa AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enersize and Doxa AB.
Diversification Opportunities for Enersize and Doxa AB
Average diversification
The 3 months correlation between Enersize and Doxa is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Enersize Oy and Doxa AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doxa 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 Doxa AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doxa AB has no effect on the direction of Enersize i.e., Enersize and Doxa AB go up and down completely randomly.
Pair Corralation between Enersize and Doxa AB
Assuming the 90 days trading horizon Enersize Oy is expected to under-perform the Doxa AB. In addition to that, Enersize is 4.76 times more volatile than Doxa AB. It trades about -0.14 of its total potential returns per unit of risk. Doxa AB is currently generating about -0.09 per unit of volatility. If you would invest 111.00 in Doxa AB on August 30, 2024 and sell it today you would lose (6.00) from holding Doxa AB or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enersize Oy vs. Doxa AB
Performance |
| Timeline |
| Enersize Oy |
| Doxa AB |
Enersize and Doxa AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enersize and Doxa AB
The main advantage of trading using opposite Enersize and Doxa AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enersize position performs unexpectedly, Doxa 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 Doxa AB will offset losses from the drop in Doxa AB's long position.| Enersize vs. Lifco AB | Enersize vs. Lagercrantz Group AB | Enersize vs. Addtech AB | Enersize vs. Instalco Intressenter AB |
| Doxa AB vs. Mantex AB | Doxa AB vs. Genovis AB | Doxa AB vs. Vestum AB | Doxa AB vs. Karolinska Development 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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