Correlation Between EVS Broadcast and Deceuninck
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Deceuninck 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 Deceuninck 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 Deceuninck, you can compare the effects of market volatilities on EVS Broadcast and Deceuninck 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 Deceuninck. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Deceuninck.
Diversification Opportunities for EVS Broadcast and Deceuninck
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between EVS and Deceuninck is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Deceuninck in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deceuninck 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 Deceuninck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deceuninck has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Deceuninck go up and down completely randomly.
Pair Corralation between EVS Broadcast and Deceuninck
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 1.43 times more return on investment than Deceuninck. However, EVS Broadcast is 1.43 times more volatile than Deceuninck. It trades about 0.24 of its potential returns per unit of risk. Deceuninck is currently generating about -0.09 per unit of risk. If you would invest 3,100 in EVS Broadcast Equipment on November 9, 2024 and sell it today you would earn a total of 190.00 from holding EVS Broadcast Equipment or generate 6.13% 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. Deceuninck
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Deceuninck |
EVS Broadcast and Deceuninck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Deceuninck
The main advantage of trading using opposite EVS Broadcast and Deceuninck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Deceuninck 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 Deceuninck will offset losses from the drop in Deceuninck's long position.| EVS Broadcast vs. Home Invest Belgium | EVS Broadcast vs. Retail Estates | EVS Broadcast vs. Onward Medical NV | EVS Broadcast vs. Ion Beam Applications |
| Deceuninck vs. NV Bekaert SA | Deceuninck vs. Tessenderlo | Deceuninck vs. Barco NV | Deceuninck vs. EVS Broadcast Equipment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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