Correlation Between EWork Group and Svedbergs
Can any of the company-specific risk be diversified away by investing in both EWork Group and Svedbergs 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 Svedbergs 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 Svedbergs i Dalstorp, you can compare the effects of market volatilities on EWork Group and Svedbergs 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 Svedbergs. Check out your portfolio center. Please also check ongoing floating volatility patterns of EWork Group and Svedbergs.
Diversification Opportunities for EWork Group and Svedbergs
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EWork and Svedbergs is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding eWork Group AB and Svedbergs i Dalstorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svedbergs i Dalstorp 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 Svedbergs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svedbergs i Dalstorp has no effect on the direction of EWork Group i.e., EWork Group and Svedbergs go up and down completely randomly.
Pair Corralation between EWork Group and Svedbergs
Assuming the 90 days trading horizon eWork Group AB is expected to generate 0.49 times more return on investment than Svedbergs. However, eWork Group AB is 2.05 times less risky than Svedbergs. It trades about 0.22 of its potential returns per unit of risk. Svedbergs i Dalstorp is currently generating about 0.07 per unit of risk. If you would invest 13,200 in eWork Group AB on August 24, 2024 and sell it today you would earn a total of 760.00 from holding eWork Group AB or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eWork Group AB vs. Svedbergs i Dalstorp
Performance |
| Timeline |
| eWork Group AB |
| Svedbergs i Dalstorp |
EWork Group and Svedbergs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EWork Group and Svedbergs
The main advantage of trading using opposite EWork Group and Svedbergs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EWork Group position performs unexpectedly, Svedbergs 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 Svedbergs will offset losses from the drop in Svedbergs' long position.| EWork Group vs. Enea AB | EWork Group vs. Novotek AB | EWork Group vs. Addnode Group AB | EWork Group vs. Softronic 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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