Correlation Between Examobile and E Shopping
Can any of the company-specific risk be diversified away by investing in both Examobile and E Shopping 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 E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Examobile SA and E shopping Group SA, you can compare the effects of market volatilities on Examobile and E Shopping 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 E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and E Shopping.
Diversification Opportunities for Examobile and E Shopping
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Examobile and ESG is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and E shopping Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E shopping Group 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 E Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E shopping Group has no effect on the direction of Examobile i.e., Examobile and E Shopping go up and down completely randomly.
Pair Corralation between Examobile and E Shopping
Assuming the 90 days trading horizon Examobile SA is expected to under-perform the E Shopping. But the stock apears to be less risky and, when comparing its historical volatility, Examobile SA is 7.45 times less risky than E Shopping. The stock trades about -0.09 of its potential returns per unit of risk. The E shopping Group SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 61.00 in E shopping Group SA on November 1, 2024 and sell it today you would earn a total of 13.00 from holding E shopping Group SA or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.89% |
| Values | Daily Returns |
Examobile SA vs. E shopping Group SA
Performance |
| Timeline |
| Examobile SA |
| E shopping Group |
Examobile and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Examobile and E Shopping
The main advantage of trading using opposite Examobile and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Examobile position performs unexpectedly, E Shopping 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 E Shopping will offset losses from the drop in E Shopping's long position.| Examobile vs. Investment Friends Capital | Examobile vs. mBank SA | Examobile vs. Creotech Instruments SA | Examobile vs. Medicofarma Biotech SA |
| E Shopping vs. Banco Santander SA | E Shopping vs. UniCredit SpA | E Shopping vs. CEZ as | E Shopping vs. Polski Koncern Naftowy |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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