Correlation Between Exor NV and Ebusco Holding
Can any of the company-specific risk be diversified away by investing in both Exor NV and Ebusco Holding 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 Exor NV and Ebusco Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exor NV and Ebusco Holding BV, you can compare the effects of market volatilities on Exor NV and Ebusco Holding 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 Exor NV with a short position of Ebusco Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exor NV and Ebusco Holding.
Diversification Opportunities for Exor NV and Ebusco Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exor and Ebusco is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Exor NV and Ebusco Holding BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebusco Holding BV and Exor 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 Exor NV are associated (or correlated) with Ebusco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebusco Holding BV has no effect on the direction of Exor NV i.e., Exor NV and Ebusco Holding go up and down completely randomly.
Pair Corralation between Exor NV and Ebusco Holding
Assuming the 90 days trading horizon Exor NV is expected to generate 0.16 times more return on investment than Ebusco Holding. However, Exor NV is 6.18 times less risky than Ebusco Holding. It trades about 0.06 of its potential returns per unit of risk. Ebusco Holding BV is currently generating about -0.11 per unit of risk. If you would invest 7,476 in Exor NV on August 24, 2024 and sell it today you would earn a total of 2,044 from holding Exor NV or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exor NV vs. Ebusco Holding BV
Performance |
| Timeline |
| Exor NV |
| Ebusco Holding BV |
Exor NV and Ebusco Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exor NV and Ebusco Holding
The main advantage of trading using opposite Exor NV and Ebusco Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exor NV position performs unexpectedly, Ebusco Holding 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 Ebusco Holding will offset losses from the drop in Ebusco Holding's long position.| Exor NV vs. Groep Brussel Lambert | Exor NV vs. HAL Trust | Exor NV vs. Ackermans Van Haaren | Exor NV vs. Sofina Socit Anonyme |
| Ebusco Holding vs. CM NV | Ebusco Holding vs. BE Semiconductor Industries | Ebusco Holding vs. Alfen Beheer BV | Ebusco Holding vs. ASR Nederland NV |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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