Correlation Between Easy Software and ENEOS Holdings
Can any of the company-specific risk be diversified away by investing in both Easy Software and ENEOS Holdings 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 Easy Software and ENEOS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easy Software AG and ENEOS Holdings, you can compare the effects of market volatilities on Easy Software and ENEOS Holdings 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 Easy Software with a short position of ENEOS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easy Software and ENEOS Holdings.
Diversification Opportunities for Easy Software and ENEOS Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Easy and ENEOS is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG and ENEOS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEOS Holdings and Easy Software 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 Easy Software AG are associated (or correlated) with ENEOS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEOS Holdings has no effect on the direction of Easy Software i.e., Easy Software and ENEOS Holdings go up and down completely randomly.
Pair Corralation between Easy Software and ENEOS Holdings
Assuming the 90 days trading horizon Easy Software is expected to generate 1.65 times less return on investment than ENEOS Holdings. But when comparing it to its historical volatility, Easy Software AG is 1.23 times less risky than ENEOS Holdings. It trades about 0.04 of its potential returns per unit of risk. ENEOS Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 360.00 in ENEOS Holdings on October 11, 2024 and sell it today you would earn a total of 132.00 from holding ENEOS Holdings or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easy Software AG vs. ENEOS Holdings
Performance |
| Timeline |
| Easy Software AG |
| ENEOS Holdings |
Easy Software and ENEOS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easy Software and ENEOS Holdings
The main advantage of trading using opposite Easy Software and ENEOS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software position performs unexpectedly, ENEOS Holdings 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 ENEOS Holdings will offset losses from the drop in ENEOS Holdings' long position.| Easy Software vs. Yanzhou Coal Mining | Easy Software vs. FIREWEED METALS P | Easy Software vs. ARDAGH METAL PACDL 0001 | Easy Software vs. Globex Mining Enterprises |
| ENEOS Holdings vs. FANDIFI TECHNOLOGY P | ENEOS Holdings vs. SYSTEMAIR AB | ENEOS Holdings vs. CHINA SOUTHN AIR H | ENEOS Holdings vs. Easy Software AG |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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