Correlation Between Enersize and Modelon AB
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By analyzing existing cross correlation between Enersize Oy and Modelon AB Cl, you can compare the effects of market volatilities on Enersize and Modelon 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 Modelon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enersize and Modelon AB.
Diversification Opportunities for Enersize and Modelon AB
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enersize and Modelon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Enersize Oy and Modelon AB Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modelon AB Cl 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 Modelon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modelon AB Cl has no effect on the direction of Enersize i.e., Enersize and Modelon AB go up and down completely randomly.
Pair Corralation between Enersize and Modelon AB
Assuming the 90 days trading horizon Enersize is expected to generate 2.81 times less return on investment than Modelon AB. In addition to that, Enersize is 1.92 times more volatile than Modelon AB Cl. It trades about 0.01 of its total potential returns per unit of risk. Modelon AB Cl is currently generating about 0.05 per unit of volatility. If you would invest 970.00 in Modelon AB Cl on September 1, 2024 and sell it today you would earn a total of 140.00 from holding Modelon AB Cl or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Enersize Oy vs. Modelon AB Cl
Performance |
| Timeline |
| Enersize Oy |
| Modelon AB Cl |
Enersize and Modelon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enersize and Modelon AB
The main advantage of trading using opposite Enersize and Modelon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enersize position performs unexpectedly, Modelon 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 Modelon AB will offset losses from the drop in Modelon AB's long position.The idea behind Enersize Oy and Modelon AB Cl 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.| Modelon AB vs. Greater Than AB | Modelon AB vs. FormPipe Software AB | Modelon AB vs. MOBA Network publ | Modelon AB vs. Exsitec 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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