Correlation Between Eniro AB and BE Group
Can any of the company-specific risk be diversified away by investing in both Eniro AB and BE Group 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 Eniro AB and BE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eniro AB and BE Group AB, you can compare the effects of market volatilities on Eniro AB and BE Group 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 Eniro AB with a short position of BE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eniro AB and BE Group.
Diversification Opportunities for Eniro AB and BE Group
Very good diversification
The 3 months correlation between Eniro and BEGR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eniro AB and BE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BE Group AB and Eniro AB 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 Eniro AB are associated (or correlated) with BE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BE Group AB has no effect on the direction of Eniro AB i.e., Eniro AB and BE Group go up and down completely randomly.
Pair Corralation between Eniro AB and BE Group
Assuming the 90 days trading horizon Eniro AB is expected to generate 2.48 times more return on investment than BE Group. However, Eniro AB is 2.48 times more volatile than BE Group AB. It trades about 0.08 of its potential returns per unit of risk. BE Group AB is currently generating about -0.31 per unit of risk. If you would invest 45.00 in Eniro AB on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Eniro AB or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eniro AB vs. BE Group AB
Performance |
| Timeline |
| Eniro AB |
| BE Group AB |
Eniro AB and BE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eniro AB and BE Group
The main advantage of trading using opposite Eniro AB and BE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eniro AB position performs unexpectedly, BE Group 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 BE Group will offset losses from the drop in BE Group's long position.| Eniro AB vs. Alfa Laval AB | Eniro AB vs. JM AB | Eniro AB vs. Anoto Group AB | Eniro AB vs. Active Biotech AB |
| BE Group vs. Bjorn Borg AB | BE Group vs. BioInvent International AB | BE Group vs. Lindab International AB | BE Group vs. Clas Ohlson 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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