Correlation Between Eniro AB and Kancera AB
Can any of the company-specific risk be diversified away by investing in both Eniro AB and Kancera 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 Eniro AB and Kancera AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eniro AB and Kancera AB, you can compare the effects of market volatilities on Eniro AB and Kancera 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 Eniro AB with a short position of Kancera AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eniro AB and Kancera AB.
Diversification Opportunities for Eniro AB and Kancera AB
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eniro and Kancera is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eniro AB and Kancera AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kancera 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 Kancera AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kancera AB has no effect on the direction of Eniro AB i.e., Eniro AB and Kancera AB go up and down completely randomly.
Pair Corralation between Eniro AB and Kancera AB
Assuming the 90 days trading horizon Eniro AB is expected to under-perform the Kancera AB. But the stock apears to be less risky and, when comparing its historical volatility, Eniro AB is 2.53 times less risky than Kancera AB. The stock trades about -0.03 of its potential returns per unit of risk. The Kancera AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Kancera AB on August 28, 2024 and sell it today you would lose (100.00) from holding Kancera AB or give up 47.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eniro AB vs. Kancera AB
Performance |
| Timeline |
| Eniro AB |
| Kancera AB |
Eniro AB and Kancera AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eniro AB and Kancera AB
The main advantage of trading using opposite Eniro AB and Kancera AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eniro AB position performs unexpectedly, Kancera 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 Kancera AB will offset losses from the drop in Kancera AB's long position.| Eniro AB vs. Alfa Laval AB | Eniro AB vs. Anoto Group AB | Eniro AB vs. Active Biotech AB | Eniro AB vs. BioInvent International AB |
| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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