Correlation Between Ion Beam and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both Ion Beam and EVS Broadcast 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 Ion Beam and EVS Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and EVS Broadcast Equipment, you can compare the effects of market volatilities on Ion Beam and EVS Broadcast 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 Ion Beam with a short position of EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and EVS Broadcast.
Diversification Opportunities for Ion Beam and EVS Broadcast
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ion and EVS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment and Ion Beam 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 Ion Beam Applications are associated (or correlated) with EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of Ion Beam i.e., Ion Beam and EVS Broadcast go up and down completely randomly.
Pair Corralation between Ion Beam and EVS Broadcast
Assuming the 90 days trading horizon Ion Beam Applications is expected to under-perform the EVS Broadcast. In addition to that, Ion Beam is 1.39 times more volatile than EVS Broadcast Equipment. It trades about 0.0 of its total potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.08 per unit of volatility. If you would invest 2,873 in EVS Broadcast Equipment on October 26, 2024 and sell it today you would earn a total of 187.00 from holding EVS Broadcast Equipment or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. EVS Broadcast Equipment
Performance |
| Timeline |
| Ion Beam Applications |
| EVS Broadcast Equipment |
Ion Beam and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and EVS Broadcast
The main advantage of trading using opposite Ion Beam and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.| Ion Beam vs. EVS Broadcast Equipment | Ion Beam vs. NV Bekaert SA | Ion Beam vs. Melexis NV | Ion Beam vs. Barco NV |
| EVS Broadcast vs. Retail Estates | EVS Broadcast vs. Home Invest Belgium | EVS Broadcast vs. Onward Medical NV | EVS Broadcast vs. Vastned Retail Belgium |
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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