Correlation Between Enter Air and GI Group
Can any of the company-specific risk be diversified away by investing in both Enter Air and GI Group 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 GI Group 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 GI Group Poland, you can compare the effects of market volatilities on Enter Air and GI Group 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 GI Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and GI Group.
Diversification Opportunities for Enter Air and GI Group
Very weak diversification
The 3 months correlation between Enter and GIG is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and GI Group Poland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GI Group Poland 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 GI Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GI Group Poland has no effect on the direction of Enter Air i.e., Enter Air and GI Group go up and down completely randomly.
Pair Corralation between Enter Air and GI Group
Assuming the 90 days trading horizon Enter Air SA is expected to generate 0.9 times more return on investment than GI Group. However, Enter Air SA is 1.11 times less risky than GI Group. It trades about 0.07 of its potential returns per unit of risk. GI Group Poland is currently generating about 0.02 per unit of risk. If you would invest 3,155 in Enter Air SA on December 6, 2024 and sell it today you would earn a total of 2,675 from holding Enter Air SA or generate 84.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enter Air SA vs. GI Group Poland
Performance |
| Timeline |
| Enter Air SA |
| GI Group Poland |
Enter Air and GI Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and GI Group
The main advantage of trading using opposite Enter Air and GI Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, GI Group 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 GI Group will offset losses from the drop in GI Group's long position.| Enter Air vs. Santander Bank Polska | Enter Air vs. Cloud Technologies SA | Enter Air vs. Drago entertainment SA | Enter Air vs. MW Trade SA |
| GI Group vs. Vivid Games SA | GI Group vs. CI Games SA | GI Group vs. Ultimate Games SA | GI Group vs. Creotech Instruments 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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