Correlation Between Enter Air and Balticon
Can any of the company-specific risk be diversified away by investing in both Enter Air and Balticon 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 Balticon 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 Balticon, you can compare the effects of market volatilities on Enter Air and Balticon 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 Balticon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and Balticon.
Diversification Opportunities for Enter Air and Balticon
Very good diversification
The 3 months correlation between Enter and Balticon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Balticon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balticon 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 Balticon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balticon has no effect on the direction of Enter Air i.e., Enter Air and Balticon go up and down completely randomly.
Pair Corralation between Enter Air and Balticon
Assuming the 90 days trading horizon Enter Air is expected to generate 19.72 times less return on investment than Balticon. But when comparing it to its historical volatility, Enter Air SA is 1.82 times less risky than Balticon. It trades about 0.01 of its potential returns per unit of risk. Balticon is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,184 in Balticon on September 1, 2024 and sell it today you would earn a total of 136.00 from holding Balticon or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.84% |
| Values | Daily Returns |
Enter Air SA vs. Balticon
Performance |
| Timeline |
| Enter Air SA |
| Balticon |
Enter Air and Balticon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and Balticon
The main advantage of trading using opposite Enter Air and Balticon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, Balticon 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 Balticon will offset losses from the drop in Balticon's 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 |
| Balticon vs. Banco Santander SA | Balticon vs. UniCredit SpA | Balticon vs. CEZ as | Balticon vs. Polski Koncern Naftowy |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |