Correlation Between Exmar NV and Whats Cooking
Can any of the company-specific risk be diversified away by investing in both Exmar NV and Whats Cooking 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 Exmar NV and Whats Cooking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exmar NV and Whats Cooking Group, you can compare the effects of market volatilities on Exmar NV and Whats Cooking 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 Exmar NV with a short position of Whats Cooking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exmar NV and Whats Cooking.
Diversification Opportunities for Exmar NV and Whats Cooking
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exmar and Whats is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Exmar NV and Whats Cooking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whats Cooking Group and Exmar NV 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 Exmar NV are associated (or correlated) with Whats Cooking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whats Cooking Group has no effect on the direction of Exmar NV i.e., Exmar NV and Whats Cooking go up and down completely randomly.
Pair Corralation between Exmar NV and Whats Cooking
Assuming the 90 days trading horizon Exmar NV is expected to generate 3.74 times less return on investment than Whats Cooking. But when comparing it to its historical volatility, Exmar NV is 1.4 times less risky than Whats Cooking. It trades about 0.04 of its potential returns per unit of risk. Whats Cooking Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,632 in Whats Cooking Group on August 29, 2024 and sell it today you would earn a total of 2,918 from holding Whats Cooking Group or generate 38.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exmar NV vs. Whats Cooking Group
Performance |
| Timeline |
| Exmar NV |
| Whats Cooking Group |
Exmar NV and Whats Cooking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exmar NV and Whats Cooking
The main advantage of trading using opposite Exmar NV and Whats Cooking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exmar NV position performs unexpectedly, Whats Cooking 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 Whats Cooking will offset losses from the drop in Whats Cooking's long position.| Exmar NV vs. EVS Broadcast Equipment | Exmar NV vs. NV Bekaert SA | Exmar NV vs. Tessenderlo | Exmar NV vs. Melexis NV |
| Whats Cooking vs. Hyloris Developmentsen Sa | Whats Cooking vs. Biocartis Group NV | Whats Cooking vs. Exmar NV | Whats Cooking vs. Iep Invest |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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