Correlation Between Enjoei SA and EBay
Can any of the company-specific risk be diversified away by investing in both Enjoei SA and EBay 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 Enjoei SA and EBay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enjoei SA and eBay Inc, you can compare the effects of market volatilities on Enjoei SA and EBay 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 Enjoei SA with a short position of EBay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enjoei SA and EBay.
Diversification Opportunities for Enjoei SA and EBay
Pay attention - limited upside
The 3 months correlation between Enjoei and EBay is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Enjoei SA and eBay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eBay Inc and Enjoei SA 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 Enjoei SA are associated (or correlated) with EBay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eBay Inc has no effect on the direction of Enjoei SA i.e., Enjoei SA and EBay go up and down completely randomly.
Pair Corralation between Enjoei SA and EBay
Assuming the 90 days trading horizon Enjoei SA is expected to generate 1.01 times less return on investment than EBay. In addition to that, Enjoei SA is 2.22 times more volatile than eBay Inc. It trades about 0.03 of its total potential returns per unit of risk. eBay Inc is currently generating about 0.07 per unit of volatility. If you would invest 10,782 in eBay Inc on August 26, 2024 and sell it today you would earn a total of 7,558 from holding eBay Inc or generate 70.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Enjoei SA vs. eBay Inc
Performance |
| Timeline |
| Enjoei SA |
| eBay Inc |
Enjoei SA and EBay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enjoei SA and EBay
The main advantage of trading using opposite Enjoei SA and EBay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enjoei SA position performs unexpectedly, EBay 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 EBay will offset losses from the drop in EBay's long position.| Enjoei SA vs. Mliuz SA | Enjoei SA vs. Neogrid Participaes SA | Enjoei SA vs. Locaweb Servios de | Enjoei SA vs. Pet Center Comrcio |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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