Correlation Between EVS Broadcast and Ion Beam
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Ion Beam 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 Ion Beam 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 Ion Beam Applications, you can compare the effects of market volatilities on EVS Broadcast and Ion Beam 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 Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Ion Beam.
Diversification Opportunities for EVS Broadcast and Ion Beam
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVS and Ion is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications 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 Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Ion Beam go up and down completely randomly.
Pair Corralation between EVS Broadcast and Ion Beam
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.79 times more return on investment than Ion Beam. However, EVS Broadcast Equipment is 1.26 times less risky than Ion Beam. It trades about 0.09 of its potential returns per unit of risk. Ion Beam Applications is currently generating about 0.0 per unit of risk. If you would invest 2,873 in EVS Broadcast Equipment on August 28, 2024 and sell it today you would earn a total of 87.00 from holding EVS Broadcast Equipment or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Ion Beam Applications
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Ion Beam Applications |
EVS Broadcast and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Ion Beam
The main advantage of trading using opposite EVS Broadcast and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| EVS Broadcast vs. Immolease Trust NV | EVS Broadcast vs. Shurgard Self Storage | EVS Broadcast vs. Vastned Retail Belgium | EVS Broadcast vs. Retail Estates |
| Ion Beam vs. EVS Broadcast Equipment | Ion Beam vs. NV Bekaert SA | Ion Beam vs. Melexis NV | Ion Beam vs. Barco 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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