Correlation Between Examobile and ADX
Can any of the company-specific risk be diversified away by investing in both Examobile and ADX 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 ADX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Examobile SA and ADX, you can compare the effects of market volatilities on Examobile and ADX 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 ADX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and ADX.
Diversification Opportunities for Examobile and ADX
Very good diversification
The 3 months correlation between Examobile and ADX is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and ADX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADX 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 ADX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADX has no effect on the direction of Examobile i.e., Examobile and ADX go up and down completely randomly.
Pair Corralation between Examobile and ADX
Assuming the 90 days trading horizon Examobile SA is expected to generate 1.56 times more return on investment than ADX. However, Examobile is 1.56 times more volatile than ADX. It trades about 0.2 of its potential returns per unit of risk. ADX is currently generating about 0.08 per unit of risk. If you would invest 342.00 in Examobile SA on September 19, 2024 and sell it today you would earn a total of 24.00 from holding Examobile SA or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.44% |
| Values | Daily Returns |
Examobile SA vs. ADX
Performance |
| Timeline |
| Examobile SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| ADX |
Examobile and ADX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Examobile and ADX
The main advantage of trading using opposite Examobile and ADX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Examobile position performs unexpectedly, ADX 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 ADX will offset losses from the drop in ADX's long position.| Examobile vs. Clean Carbon Energy | Examobile vs. ADX | Examobile vs. Agroliga Group PLC | Examobile vs. Vee SA |
| ADX vs. Asseco Business Solutions | ADX vs. Asseco South Eastern | ADX vs. HM Inwest SA | ADX vs. Movie Games 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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