Correlation Between EVS Broadcast and Smartphoto Group
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Smartphoto Group 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 Smartphoto Group 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 Smartphoto Group NV, you can compare the effects of market volatilities on EVS Broadcast and Smartphoto Group 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 Smartphoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Smartphoto Group.
Diversification Opportunities for EVS Broadcast and Smartphoto Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EVS and Smartphoto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Smartphoto Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartphoto Group 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 Smartphoto Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartphoto Group has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Smartphoto Group go up and down completely randomly.
Pair Corralation between EVS Broadcast and Smartphoto Group
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 2.56 times more return on investment than Smartphoto Group. However, EVS Broadcast is 2.56 times more volatile than Smartphoto Group NV. It trades about 0.24 of its potential returns per unit of risk. Smartphoto Group NV is currently generating about -0.26 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 | Flat |
| Strength | Insignificant |
| Accuracy | 18.18% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Smartphoto Group NV
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Smartphoto Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
EVS Broadcast and Smartphoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Smartphoto Group
The main advantage of trading using opposite EVS Broadcast and Smartphoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Smartphoto Group 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 Smartphoto Group will offset losses from the drop in Smartphoto Group'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 |
| Smartphoto Group vs. EVS Broadcast Equipment | Smartphoto Group vs. Tessenderlo | Smartphoto Group vs. Deceuninck | Smartphoto Group vs. Sipef 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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