Correlation Between Enter Air and Agroton Public
Can any of the company-specific risk be diversified away by investing in both Enter Air and Agroton Public 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 Enter Air and Agroton Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enter Air SA and Agroton Public, you can compare the effects of market volatilities on Enter Air and Agroton Public 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 Enter Air with a short position of Agroton Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and Agroton Public.
Diversification Opportunities for Enter Air and Agroton Public
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Enter and Agroton is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Agroton Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroton Public and Enter Air 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 Enter Air SA are associated (or correlated) with Agroton Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agroton Public has no effect on the direction of Enter Air i.e., Enter Air and Agroton Public go up and down completely randomly.
Pair Corralation between Enter Air and Agroton Public
Assuming the 90 days trading horizon Enter Air SA is expected to generate 0.8 times more return on investment than Agroton Public. However, Enter Air SA is 1.25 times less risky than Agroton Public. It trades about 0.04 of its potential returns per unit of risk. Agroton Public is currently generating about 0.02 per unit of risk. If you would invest 4,412 in Enter Air SA on September 14, 2024 and sell it today you would earn a total of 1,228 from holding Enter Air SA or generate 27.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Enter Air SA vs. Agroton Public
Performance |
| Timeline |
| Enter Air SA |
| Agroton Public |
Enter Air and Agroton Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and Agroton Public
The main advantage of trading using opposite Enter Air and Agroton Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, Agroton Public 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 Agroton Public will offset losses from the drop in Agroton Public's long position.| Enter Air vs. Banco Santander SA | Enter Air vs. UniCredit SpA | Enter Air vs. CEZ as | Enter Air vs. Polski Koncern Naftowy |
| Agroton Public vs. mBank SA | Agroton Public vs. Bank Millennium SA | Agroton Public vs. Medicalg | Agroton Public vs. Monnari Trade SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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