Correlation Between Easy Software and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both Easy Software and Thoresen Thai 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 Thoresen Thai 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 Thoresen Thai Agencies, you can compare the effects of market volatilities on Easy Software and Thoresen Thai 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 Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easy Software and Thoresen Thai.
Diversification Opportunities for Easy Software and Thoresen Thai
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Easy and Thoresen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies 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 Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of Easy Software i.e., Easy Software and Thoresen Thai go up and down completely randomly.
Pair Corralation between Easy Software and Thoresen Thai
Assuming the 90 days trading horizon Easy Software AG is expected to generate 0.79 times more return on investment than Thoresen Thai. However, Easy Software AG is 1.27 times less risky than Thoresen Thai. It trades about 0.01 of its potential returns per unit of risk. Thoresen Thai Agencies is currently generating about -0.07 per unit of risk. If you would invest 1,800 in Easy Software AG on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Easy Software AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Easy Software AG vs. Thoresen Thai Agencies
Performance |
| Timeline |
| Easy Software AG |
| Thoresen Thai Agencies |
Easy Software and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easy Software and Thoresen Thai
The main advantage of trading using opposite Easy Software and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai's long position.| Easy Software vs. Salesforce | Easy Software vs. SAP SE | Easy Software vs. Uber Technologies | Easy Software vs. PagerDuty |
| Thoresen Thai vs. United Insurance Holdings | Thoresen Thai vs. X FAB Silicon Foundries | Thoresen Thai vs. INSURANCE AUST GRP | Thoresen Thai vs. Reinsurance Group of |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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