Correlation Between EVS Broadcast and Argen X
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Argen X 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 EVS Broadcast and Argen X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Argen X, you can compare the effects of market volatilities on EVS Broadcast and Argen X 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 EVS Broadcast with a short position of Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Argen X.
Diversification Opportunities for EVS Broadcast and Argen X
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVS and Argen is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Argen X go up and down completely randomly.
Pair Corralation between EVS Broadcast and Argen X
Assuming the 90 days trading horizon EVS Broadcast is expected to generate 6.97 times less return on investment than Argen X. But when comparing it to its historical volatility, EVS Broadcast Equipment is 1.31 times less risky than Argen X. It trades about 0.04 of its potential returns per unit of risk. Argen X is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 48,560 in Argen X on August 30, 2024 and sell it today you would earn a total of 9,680 from holding Argen X or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Argen X
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Argen X |
EVS Broadcast and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Argen X
The main advantage of trading using opposite EVS Broadcast and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X's long position.| EVS Broadcast vs. Ackermans Van Haaren | EVS Broadcast vs. Exmar NV | EVS Broadcast vs. Unifiedpost Group SA | EVS Broadcast vs. Biocartis Group NV |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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