Correlation Between Genovis AB and Enea AB
Can any of the company-specific risk be diversified away by investing in both Genovis AB and Enea AB 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 Genovis AB and Enea AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genovis AB and Enea AB, you can compare the effects of market volatilities on Genovis AB and Enea 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 Genovis AB with a short position of Enea AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genovis AB and Enea AB.
Diversification Opportunities for Genovis AB and Enea AB
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genovis and Enea is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Genovis AB and Enea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enea AB and Genovis AB 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 Genovis AB are associated (or correlated) with Enea AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enea AB has no effect on the direction of Genovis AB i.e., Genovis AB and Enea AB go up and down completely randomly.
Pair Corralation between Genovis AB and Enea AB
Assuming the 90 days trading horizon Genovis AB is expected to under-perform the Enea AB. In addition to that, Genovis AB is 1.28 times more volatile than Enea AB. It trades about -0.02 of its total potential returns per unit of risk. Enea AB is currently generating about 0.01 per unit of volatility. If you would invest 9,910 in Enea AB on November 5, 2024 and sell it today you would lose (110.00) from holding Enea AB or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Genovis AB vs. Enea AB
Performance |
| Timeline |
| Genovis AB |
| Enea AB |
Genovis AB and Enea AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genovis AB and Enea AB
The main advantage of trading using opposite Genovis AB and Enea AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genovis AB position performs unexpectedly, Enea 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 Enea AB will offset losses from the drop in Enea AB's long position.| Genovis AB vs. Invisio Communications AB | Genovis AB vs. Nitro Games Oyj | Genovis AB vs. New Nordic Healthbrands | Genovis AB vs. Train Alliance Sweden |
| Enea AB vs. Know IT AB | Enea AB vs. Proact IT Group | Enea AB vs. Hexatronic Group AB | Enea AB vs. Inwido 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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