Correlation Between EON SE and Avista
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By analyzing existing cross correlation between EON SE and Avista, you can compare the effects of market volatilities on EON SE and Avista 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 EON SE with a short position of Avista. Check out your portfolio center. Please also check ongoing floating volatility patterns of EON SE and Avista.
Diversification Opportunities for EON SE and Avista
Poor diversification
The 3 months correlation between EON and Avista is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding EON SE and Avista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avista and EON SE 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 EON SE are associated (or correlated) with Avista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avista has no effect on the direction of EON SE i.e., EON SE and Avista go up and down completely randomly.
Pair Corralation between EON SE and Avista
Assuming the 90 days trading horizon EON SE is expected to generate 1.75 times less return on investment than Avista. But when comparing it to its historical volatility, EON SE is 1.17 times less risky than Avista. It trades about 0.03 of its potential returns per unit of risk. Avista is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,981 in Avista on November 28, 2024 and sell it today you would earn a total of 659.00 from holding Avista or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EON SE vs. Avista
Performance |
| Timeline |
| EON SE |
| Avista |
EON SE and Avista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EON SE and Avista
The main advantage of trading using opposite EON SE and Avista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EON SE position performs unexpectedly, Avista 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 Avista will offset losses from the drop in Avista's long position.| EON SE vs. China Southern Airlines | EON SE vs. Data Modul AG | EON SE vs. DATAGROUP SE | EON SE vs. China Datang |
| Avista vs. 24SEVENOFFICE GROUP AB | Avista vs. COMM HEALTH SYSTEMS | Avista vs. MAVEN WIRELESS SWEDEN | Avista vs. OFFICE DEPOT |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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