Correlation Between Expand Energy and Via Optronics
Can any of the company-specific risk be diversified away by investing in both Expand Energy and Via Optronics 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 Expand Energy and Via Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Via Optronics Ag, you can compare the effects of market volatilities on Expand Energy and Via Optronics 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 Expand Energy with a short position of Via Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Via Optronics.
Diversification Opportunities for Expand Energy and Via Optronics
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Expand and Via is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Via Optronics Ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Optronics Ag and Expand Energy 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 Expand Energy are associated (or correlated) with Via Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Optronics Ag has no effect on the direction of Expand Energy i.e., Expand Energy and Via Optronics go up and down completely randomly.
Pair Corralation between Expand Energy and Via Optronics
If you would invest 8,963 in Expand Energy on October 24, 2024 and sell it today you would earn a total of 1,169 from holding Expand Energy or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Expand Energy vs. Via Optronics Ag
Performance |
| Timeline |
| Expand Energy |
| Via Optronics Ag |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Expand Energy and Via Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Via Optronics
The main advantage of trading using opposite Expand Energy and Via Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Via Optronics 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 Via Optronics will offset losses from the drop in Via Optronics' long position.| Expand Energy vs. NETGEAR | Expand Energy vs. IPG Photonics | Expand Energy vs. Yuexiu Transport Infrastructure | Expand Energy vs. United Microelectronics |
| Via Optronics vs. Benchmark Electronics | Via Optronics vs. Bel Fuse A | Via Optronics vs. Methode Electronics | Via Optronics vs. Bel Fuse B |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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