Correlation Between Ensurge Micropower and Biofish Holding
Can any of the company-specific risk be diversified away by investing in both Ensurge Micropower and Biofish Holding 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 Ensurge Micropower and Biofish Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ensurge Micropower ASA and Biofish Holding AS, you can compare the effects of market volatilities on Ensurge Micropower and Biofish Holding 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 Ensurge Micropower with a short position of Biofish Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensurge Micropower and Biofish Holding.
Diversification Opportunities for Ensurge Micropower and Biofish Holding
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ensurge and Biofish is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ensurge Micropower ASA and Biofish Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofish Holding AS and Ensurge Micropower 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 Ensurge Micropower ASA are associated (or correlated) with Biofish Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofish Holding AS has no effect on the direction of Ensurge Micropower i.e., Ensurge Micropower and Biofish Holding go up and down completely randomly.
Pair Corralation between Ensurge Micropower and Biofish Holding
Assuming the 90 days trading horizon Ensurge Micropower ASA is expected to generate 1.72 times more return on investment than Biofish Holding. However, Ensurge Micropower is 1.72 times more volatile than Biofish Holding AS. It trades about 0.01 of its potential returns per unit of risk. Biofish Holding AS is currently generating about -0.08 per unit of risk. If you would invest 92.00 in Ensurge Micropower ASA on September 14, 2024 and sell it today you would lose (1.00) from holding Ensurge Micropower ASA or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ensurge Micropower ASA vs. Biofish Holding AS
Performance |
| Timeline |
| Ensurge Micropower ASA |
| Biofish Holding AS |
Ensurge Micropower and Biofish Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensurge Micropower and Biofish Holding
The main advantage of trading using opposite Ensurge Micropower and Biofish Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensurge Micropower position performs unexpectedly, Biofish Holding 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 Biofish Holding will offset losses from the drop in Biofish Holding's long position.| Ensurge Micropower vs. Storebrand ASA | Ensurge Micropower vs. DnB ASA | Ensurge Micropower vs. Telenor ASA | Ensurge Micropower vs. Kongsberg Gruppen ASA |
| Biofish Holding vs. Hynion AS | Biofish Holding vs. Icelandic Salmon As | Biofish Holding vs. Ensurge Micropower ASA | Biofish Holding vs. Gigante Salmon AS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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