Correlation Between Goodbye Kansas and Enad Global
Can any of the company-specific risk be diversified away by investing in both Goodbye Kansas and Enad Global 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 Goodbye Kansas and Enad Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodbye Kansas Group and Enad Global 7, you can compare the effects of market volatilities on Goodbye Kansas and Enad Global 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 Goodbye Kansas with a short position of Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbye Kansas and Enad Global.
Diversification Opportunities for Goodbye Kansas and Enad Global
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goodbye and Enad is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Goodbye Kansas Group and Enad Global 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enad Global 7 and Goodbye Kansas 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 Goodbye Kansas Group are associated (or correlated) with Enad Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enad Global 7 has no effect on the direction of Goodbye Kansas i.e., Goodbye Kansas and Enad Global go up and down completely randomly.
Pair Corralation between Goodbye Kansas and Enad Global
Assuming the 90 days trading horizon Goodbye Kansas Group is expected to generate 1.46 times more return on investment than Enad Global. However, Goodbye Kansas is 1.46 times more volatile than Enad Global 7. It trades about 0.42 of its potential returns per unit of risk. Enad Global 7 is currently generating about -0.32 per unit of risk. If you would invest 147.00 in Goodbye Kansas Group on November 7, 2024 and sell it today you would earn a total of 67.00 from holding Goodbye Kansas Group or generate 45.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodbye Kansas Group vs. Enad Global 7
Performance |
| Timeline |
| Goodbye Kansas Group |
| Enad Global 7 |
Goodbye Kansas and Enad Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbye Kansas and Enad Global
The main advantage of trading using opposite Goodbye Kansas and Enad Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbye Kansas position performs unexpectedly, Enad Global 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 Enad Global will offset losses from the drop in Enad Global's long position.| Goodbye Kansas vs. Lime Technologies AB | Goodbye Kansas vs. Corline Biomedical AB | Goodbye Kansas vs. OptiCept Technologies AB | Goodbye Kansas vs. Vitec Software Group |
| Enad Global vs. Stillfront Group AB | Enad Global vs. Embracer Group AB | Enad Global vs. G5 Entertainment publ | Enad Global vs. Sinch AB |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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