Correlation Between Enter Air and Baked Games
Can any of the company-specific risk be diversified away by investing in both Enter Air and Baked Games 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 Baked Games 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 Baked Games SA, you can compare the effects of market volatilities on Enter Air and Baked Games 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 Baked Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and Baked Games.
Diversification Opportunities for Enter Air and Baked Games
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enter and Baked is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Baked Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baked Games SA 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 Baked Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baked Games SA has no effect on the direction of Enter Air i.e., Enter Air and Baked Games go up and down completely randomly.
Pair Corralation between Enter Air and Baked Games
Assuming the 90 days trading horizon Enter Air SA is expected to under-perform the Baked Games. But the stock apears to be less risky and, when comparing its historical volatility, Enter Air SA is 2.09 times less risky than Baked Games. The stock trades about -0.15 of its potential returns per unit of risk. The Baked Games SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 315.00 in Baked Games SA on September 1, 2024 and sell it today you would lose (3.00) from holding Baked Games SA or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Enter Air SA vs. Baked Games SA
Performance |
| Timeline |
| Enter Air SA |
| Baked Games SA |
Enter Air and Baked Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and Baked Games
The main advantage of trading using opposite Enter Air and Baked Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, Baked Games 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 Baked Games will offset losses from the drop in Baked Games' long position.| Enter Air vs. Skyline Investment SA | Enter Air vs. ING Bank lski | Enter Air vs. Movie Games SA | Enter Air vs. Noble Financials SA |
| Baked Games vs. TEN SQUARE GAMES | Baked Games vs. Mlk Foods Public | Baked Games vs. Enter Air SA | Baked Games vs. LSI Software 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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