Correlation Between Freenet AG and USWE SPORTS
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By analyzing existing cross correlation between freenet AG and USWE SPORTS AB, you can compare the effects of market volatilities on Freenet AG and USWE SPORTS 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 Freenet AG with a short position of USWE SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freenet AG and USWE SPORTS.
Diversification Opportunities for Freenet AG and USWE SPORTS
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Freenet and USWE is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding freenet AG and USWE SPORTS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE SPORTS AB and Freenet AG 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 freenet AG are associated (or correlated) with USWE SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE SPORTS AB has no effect on the direction of Freenet AG i.e., Freenet AG and USWE SPORTS go up and down completely randomly.
Pair Corralation between Freenet AG and USWE SPORTS
Assuming the 90 days trading horizon Freenet AG is expected to generate 1.98 times less return on investment than USWE SPORTS. But when comparing it to its historical volatility, freenet AG is 2.75 times less risky than USWE SPORTS. It trades about 0.49 of its potential returns per unit of risk. USWE SPORTS AB is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 73.00 in USWE SPORTS AB on October 24, 2024 and sell it today you would earn a total of 10.00 from holding USWE SPORTS AB or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
freenet AG vs. USWE SPORTS AB
Performance |
| Timeline |
| freenet AG |
| USWE SPORTS AB |
Freenet AG and USWE SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freenet AG and USWE SPORTS
The main advantage of trading using opposite Freenet AG and USWE SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freenet AG position performs unexpectedly, USWE SPORTS 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 USWE SPORTS will offset losses from the drop in USWE SPORTS's long position.| Freenet AG vs. Hyatt Hotels | Freenet AG vs. BORR DRILLING NEW | Freenet AG vs. Pembina Pipeline Corp | Freenet AG vs. Pebblebrook Hotel Trust |
| USWE SPORTS vs. BE Semiconductor Industries | USWE SPORTS vs. Lamar Advertising | USWE SPORTS vs. GRENKELEASING Dusseldorf | USWE SPORTS vs. WILLIS LEASE FIN |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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