Correlation Between EWork Group and Zinzino AB
Can any of the company-specific risk be diversified away by investing in both EWork Group and Zinzino AB 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 Zinzino AB 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 Zinzino AB Series, you can compare the effects of market volatilities on EWork Group and Zinzino AB 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 Zinzino AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of EWork Group and Zinzino AB.
Diversification Opportunities for EWork Group and Zinzino AB
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between EWork and Zinzino is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding eWork Group AB and Zinzino AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinzino AB Series 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 Zinzino AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinzino AB Series has no effect on the direction of EWork Group i.e., EWork Group and Zinzino AB go up and down completely randomly.
Pair Corralation between EWork Group and Zinzino AB
Assuming the 90 days trading horizon EWork Group is expected to generate 27.61 times less return on investment than Zinzino AB. But when comparing it to its historical volatility, eWork Group AB is 1.93 times less risky than Zinzino AB. It trades about 0.01 of its potential returns per unit of risk. Zinzino AB Series is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,060 in Zinzino AB Series on September 1, 2024 and sell it today you would earn a total of 1,810 from holding Zinzino AB Series or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eWork Group AB vs. Zinzino AB Series
Performance |
| Timeline |
| eWork Group AB |
| Zinzino AB Series |
EWork Group and Zinzino AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EWork Group and Zinzino AB
The main advantage of trading using opposite EWork Group and Zinzino AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EWork Group position performs unexpectedly, Zinzino AB 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 Zinzino AB will offset losses from the drop in Zinzino AB's long position.| EWork Group vs. Softronic AB | EWork Group vs. Proact IT Group | EWork Group vs. Inwido AB | EWork Group vs. NOTE AB |
| Zinzino AB vs. eWork Group AB | Zinzino AB vs. Softronic AB | Zinzino AB vs. Niloerngruppen AB Series | Zinzino AB vs. Transtema Group AB |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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