Correlation Between Humble Group and Embracer Group
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By analyzing existing cross correlation between Humble Group AB and Embracer Group AB, you can compare the effects of market volatilities on Humble Group and Embracer Group 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 Humble Group with a short position of Embracer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humble Group and Embracer Group.
Diversification Opportunities for Humble Group and Embracer Group
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Humble and Embracer is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Humble Group AB and Embracer Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embracer Group AB and Humble Group 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 Humble Group AB are associated (or correlated) with Embracer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embracer Group AB has no effect on the direction of Humble Group i.e., Humble Group and Embracer Group go up and down completely randomly.
Pair Corralation between Humble Group and Embracer Group
Assuming the 90 days trading horizon Humble Group AB is expected to generate 0.65 times more return on investment than Embracer Group. However, Humble Group AB is 1.54 times less risky than Embracer Group. It trades about 0.02 of its potential returns per unit of risk. Embracer Group AB is currently generating about 0.01 per unit of risk. If you would invest 1,120 in Humble Group AB on October 9, 2024 and sell it today you would earn a total of 169.00 from holding Humble Group AB or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humble Group AB vs. Embracer Group AB
Performance |
| Timeline |
| Humble Group AB |
| Embracer Group AB |
Humble Group and Embracer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humble Group and Embracer Group
The main advantage of trading using opposite Humble Group and Embracer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humble Group position performs unexpectedly, Embracer Group 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 Embracer Group will offset losses from the drop in Embracer Group's long position.| Humble Group vs. Know IT AB | Humble Group vs. Cloetta AB | Humble Group vs. BioGaia AB | Humble Group vs. Byggmax Group AB |
| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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