Correlation Between Enter Air and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both Enter Air and TEN SQUARE 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 TEN SQUARE 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 TEN SQUARE GAMES, you can compare the effects of market volatilities on Enter Air and TEN SQUARE 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 TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and TEN SQUARE.
Diversification Opportunities for Enter Air and TEN SQUARE
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enter and TEN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES 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 TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of Enter Air i.e., Enter Air and TEN SQUARE go up and down completely randomly.
Pair Corralation between Enter Air and TEN SQUARE
Assuming the 90 days trading horizon Enter Air SA is expected to generate 0.83 times more return on investment than TEN SQUARE. However, Enter Air SA is 1.21 times less risky than TEN SQUARE. It trades about -0.04 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about -0.06 per unit of risk. If you would invest 6,020 in Enter Air SA on September 12, 2024 and sell it today you would lose (130.00) from holding Enter Air SA or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enter Air SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| Enter Air SA |
| TEN SQUARE GAMES |
Enter Air and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and TEN SQUARE
The main advantage of trading using opposite Enter Air and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE'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 |
| TEN SQUARE vs. Medicalg | TEN SQUARE vs. Play2Chill SA | TEN SQUARE vs. Tower Investments SA | TEN SQUARE vs. Echo Investment 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |