Correlation Between Examobile and Abak SA
Can any of the company-specific risk be diversified away by investing in both Examobile and Abak SA 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 Examobile and Abak SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Examobile SA and Abak SA, you can compare the effects of market volatilities on Examobile and Abak SA 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 Examobile with a short position of Abak SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and Abak SA.
Diversification Opportunities for Examobile and Abak SA
Good diversification
The 3 months correlation between Examobile and Abak is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and Abak SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abak SA and Examobile 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 Examobile SA are associated (or correlated) with Abak SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abak SA has no effect on the direction of Examobile i.e., Examobile and Abak SA go up and down completely randomly.
Pair Corralation between Examobile and Abak SA
Assuming the 90 days trading horizon Examobile SA is expected to under-perform the Abak SA. But the stock apears to be less risky and, when comparing its historical volatility, Examobile SA is 1.19 times less risky than Abak SA. The stock trades about -0.03 of its potential returns per unit of risk. The Abak SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Abak SA on September 19, 2024 and sell it today you would earn a total of 112.00 from holding Abak SA or generate 43.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.96% |
| Values | Daily Returns |
Examobile SA vs. Abak SA
Performance |
| Timeline |
| Examobile SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Abak SA |
Examobile and Abak SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Examobile and Abak SA
The main advantage of trading using opposite Examobile and Abak SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Examobile position performs unexpectedly, Abak SA 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 Abak SA will offset losses from the drop in Abak SA's long position.| Examobile vs. Clean Carbon Energy | Examobile vs. ADX | Examobile vs. Agroliga Group PLC | Examobile vs. Vee SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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