Correlation Between E Xim and Balticon
Can any of the company-specific risk be diversified away by investing in both E Xim and Balticon 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 E Xim and Balticon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Xim IT and Balticon, you can compare the effects of market volatilities on E Xim and Balticon 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 E Xim with a short position of Balticon. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Xim and Balticon.
Diversification Opportunities for E Xim and Balticon
Excellent diversification
The 3 months correlation between EXM and Balticon is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding E Xim IT and Balticon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balticon and E Xim 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 E Xim IT are associated (or correlated) with Balticon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balticon has no effect on the direction of E Xim i.e., E Xim and Balticon go up and down completely randomly.
Pair Corralation between E Xim and Balticon
Assuming the 90 days trading horizon E Xim is expected to generate 1.06 times less return on investment than Balticon. But when comparing it to its historical volatility, E Xim IT is 1.81 times less risky than Balticon. It trades about 0.53 of its potential returns per unit of risk. Balticon is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Balticon on August 30, 2024 and sell it today you would earn a total of 240.00 from holding Balticon or generate 21.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
E Xim IT vs. Balticon
Performance |
| Timeline |
| E Xim IT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Balticon |
E Xim and Balticon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Xim and Balticon
The main advantage of trading using opposite E Xim and Balticon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Xim position performs unexpectedly, Balticon 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 Balticon will offset losses from the drop in Balticon's long position.| E Xim vs. Varsav Game Studios | E Xim vs. Gamedust SA | E Xim vs. Ultimate Games SA | E Xim vs. Inter Cars SA |
| Balticon vs. LSI Software SA | Balticon vs. Road Studio SA | Balticon vs. SOFTWARE MANSION SPOLKA | Balticon vs. Enter Air 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |