Correlation Between EWork Group and Avensia Publ
Can any of the company-specific risk be diversified away by investing in both EWork Group and Avensia Publ 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 EWork Group and Avensia Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eWork Group AB and Avensia publ AB, you can compare the effects of market volatilities on EWork Group and Avensia Publ 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 EWork Group with a short position of Avensia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of EWork Group and Avensia Publ.
Diversification Opportunities for EWork Group and Avensia Publ
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EWork and Avensia is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding eWork Group AB and Avensia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avensia publ AB and EWork Group 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 eWork Group AB are associated (or correlated) with Avensia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avensia publ AB has no effect on the direction of EWork Group i.e., EWork Group and Avensia Publ go up and down completely randomly.
Pair Corralation between EWork Group and Avensia Publ
Assuming the 90 days trading horizon EWork Group is expected to generate 12.48 times less return on investment than Avensia Publ. But when comparing it to its historical volatility, eWork Group AB is 1.85 times less risky than Avensia Publ. It trades about 0.02 of its potential returns per unit of risk. Avensia publ AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 822.00 in Avensia publ AB on November 27, 2024 and sell it today you would earn a total of 126.00 from holding Avensia publ AB or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eWork Group AB vs. Avensia publ AB
Performance |
| Timeline |
| eWork Group AB |
| Avensia publ AB |
EWork Group and Avensia Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EWork Group and Avensia Publ
The main advantage of trading using opposite EWork Group and Avensia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EWork Group position performs unexpectedly, Avensia Publ 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 Avensia Publ will offset losses from the drop in Avensia Publ's long position.| EWork Group vs. Softronic AB | EWork Group vs. Proact IT Group | EWork Group vs. Inwido AB | EWork Group vs. NOTE AB |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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