Correlation Between Energean Oil and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Energean Oil and Prosiebensat 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 Energean Oil and Prosiebensat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energean Oil Gas and Prosiebensat 1 Media, you can compare the effects of market volatilities on Energean Oil and Prosiebensat 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 Energean Oil with a short position of Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energean Oil and Prosiebensat.
Diversification Opportunities for Energean Oil and Prosiebensat
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Energean and Prosiebensat is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Energean Oil Gas and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media and Energean Oil 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 Energean Oil Gas are associated (or correlated) with Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Energean Oil i.e., Energean Oil and Prosiebensat go up and down completely randomly.
Pair Corralation between Energean Oil and Prosiebensat
Assuming the 90 days trading horizon Energean Oil Gas is expected to generate 0.77 times more return on investment than Prosiebensat. However, Energean Oil Gas is 1.3 times less risky than Prosiebensat. It trades about 0.29 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about 0.0 per unit of risk. If you would invest 97,900 in Energean Oil Gas on October 21, 2024 and sell it today you would earn a total of 7,900 from holding Energean Oil Gas or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energean Oil Gas vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Energean Oil Gas |
| Prosiebensat 1 Media |
Energean Oil and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energean Oil and Prosiebensat
The main advantage of trading using opposite Energean Oil and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energean Oil position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Energean Oil vs. Zoom Video Communications | Energean Oil vs. Enbridge | Energean Oil vs. Endo International PLC | Energean Oil vs. Somero Enterprise |
| Prosiebensat vs. Blackrock World Mining | Prosiebensat vs. Cairn Homes PLC | Prosiebensat vs. Eastinco Mining Exploration | Prosiebensat vs. CNH Industrial NV |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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