Correlation Between Esprinet SpA and KAGA EL
Can any of the company-specific risk be diversified away by investing in both Esprinet SpA and KAGA EL 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 Esprinet SpA and KAGA EL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esprinet SpA and KAGA EL LTD, you can compare the effects of market volatilities on Esprinet SpA and KAGA EL 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 Esprinet SpA with a short position of KAGA EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esprinet SpA and KAGA EL.
Diversification Opportunities for Esprinet SpA and KAGA EL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Esprinet and KAGA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Esprinet SpA and KAGA EL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAGA EL LTD and Esprinet SpA 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 Esprinet SpA are associated (or correlated) with KAGA EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAGA EL LTD has no effect on the direction of Esprinet SpA i.e., Esprinet SpA and KAGA EL go up and down completely randomly.
Pair Corralation between Esprinet SpA and KAGA EL
Assuming the 90 days trading horizon Esprinet SpA is expected to under-perform the KAGA EL. In addition to that, Esprinet SpA is 1.19 times more volatile than KAGA EL LTD. It trades about -0.06 of its total potential returns per unit of risk. KAGA EL LTD is currently generating about 0.04 per unit of volatility. If you would invest 1,630 in KAGA EL LTD on September 26, 2024 and sell it today you would earn a total of 120.00 from holding KAGA EL LTD or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esprinet SpA vs. KAGA EL LTD
Performance |
| Timeline |
| Esprinet SpA |
| KAGA EL LTD |
Esprinet SpA and KAGA EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esprinet SpA and KAGA EL
The main advantage of trading using opposite Esprinet SpA and KAGA EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esprinet SpA position performs unexpectedly, KAGA EL 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 KAGA EL will offset losses from the drop in KAGA EL's long position.| Esprinet SpA vs. Arrow Electronics | Esprinet SpA vs. DICKER DATA LTD | Esprinet SpA vs. KAGA EL LTD | Esprinet SpA vs. Wayside Technology Group |
| KAGA EL vs. Arrow Electronics | KAGA EL vs. DICKER DATA LTD | KAGA EL vs. Esprinet SpA | KAGA EL vs. Wayside Technology Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |