Correlation Between G5 Entertainment and Essity AB
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By analyzing existing cross correlation between G5 Entertainment publ and Essity AB, you can compare the effects of market volatilities on G5 Entertainment and Essity AB 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 G5 Entertainment with a short position of Essity AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Essity AB.
Diversification Opportunities for G5 Entertainment and Essity AB
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between G5EN and Essity is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and Essity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essity AB and G5 Entertainment 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 G5 Entertainment publ are associated (or correlated) with Essity AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essity AB has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Essity AB go up and down completely randomly.
Pair Corralation between G5 Entertainment and Essity AB
Assuming the 90 days trading horizon G5 Entertainment is expected to generate 1.79 times less return on investment than Essity AB. In addition to that, G5 Entertainment is 3.53 times more volatile than Essity AB. It trades about 0.06 of its total potential returns per unit of risk. Essity AB is currently generating about 0.4 per unit of volatility. If you would invest 27,580 in Essity AB on December 6, 2024 and sell it today you would earn a total of 2,330 from holding Essity AB or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
G5 Entertainment publ vs. Essity AB
Performance |
| Timeline |
| G5 Entertainment publ |
| Essity AB |
G5 Entertainment and Essity AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Essity AB
The main advantage of trading using opposite G5 Entertainment and Essity AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Essity AB 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 Essity AB will offset losses from the drop in Essity AB's long position.| G5 Entertainment vs. Stillfront Group AB | G5 Entertainment vs. Paradox Interactive AB | G5 Entertainment vs. Catena Media plc | G5 Entertainment vs. Betsson AB |
| Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. ASSA ABLOY AB | Essity AB vs. AB Electrolux | Essity AB vs. AB SKF |
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..
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