Correlation Between Enter Air and Investment Friends
Can any of the company-specific risk be diversified away by investing in both Enter Air and Investment Friends 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 Investment Friends 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 Investment Friends Capital, you can compare the effects of market volatilities on Enter Air and Investment Friends 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 Investment Friends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and Investment Friends.
Diversification Opportunities for Enter Air and Investment Friends
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enter and Investment is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Investment Friends Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Friends 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 Investment Friends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Friends has no effect on the direction of Enter Air i.e., Enter Air and Investment Friends go up and down completely randomly.
Pair Corralation between Enter Air and Investment Friends
Assuming the 90 days trading horizon Enter Air is expected to generate 12.57 times less return on investment than Investment Friends. But when comparing it to its historical volatility, Enter Air SA is 22.47 times less risky than Investment Friends. It trades about 0.09 of its potential returns per unit of risk. Investment Friends Capital is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 102.00 in Investment Friends Capital on September 14, 2024 and sell it today you would earn a total of 428.00 from holding Investment Friends Capital or generate 419.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.27% |
| Values | Daily Returns |
Enter Air SA vs. Investment Friends Capital
Performance |
| Timeline |
| Enter Air SA |
| Investment Friends |
Enter Air and Investment Friends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and Investment Friends
The main advantage of trading using opposite Enter Air and Investment Friends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, Investment Friends 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 Investment Friends will offset losses from the drop in Investment Friends' long position.| Enter Air vs. Banco Santander SA | Enter Air vs. UniCredit SpA | Enter Air vs. CEZ as | Enter Air vs. Polski Koncern Naftowy |
| Investment Friends vs. Kruk SA | Investment Friends vs. MW Trade SA | Investment Friends vs. Asseco Business Solutions | Investment Friends vs. Asseco South Eastern |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Directory Find actively traded commodities issued by global exchanges |