Correlation Between Mavshack Publ and Enersize
Can any of the company-specific risk be diversified away by investing in both Mavshack Publ and Enersize 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 Mavshack Publ and Enersize into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mavshack publ AB and Enersize Oy, you can compare the effects of market volatilities on Mavshack Publ and Enersize 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 Mavshack Publ with a short position of Enersize. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mavshack Publ and Enersize.
Diversification Opportunities for Mavshack Publ and Enersize
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mavshack and Enersize is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mavshack publ AB and Enersize Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersize Oy and Mavshack Publ 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 Mavshack publ AB are associated (or correlated) with Enersize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersize Oy has no effect on the direction of Mavshack Publ i.e., Mavshack Publ and Enersize go up and down completely randomly.
Pair Corralation between Mavshack Publ and Enersize
Assuming the 90 days trading horizon Mavshack publ AB is expected to under-perform the Enersize. In addition to that, Mavshack Publ is 1.24 times more volatile than Enersize Oy. It trades about -0.19 of its total potential returns per unit of risk. Enersize Oy is currently generating about 0.05 per unit of volatility. If you would invest 0.59 in Enersize Oy on August 28, 2024 and sell it today you would earn a total of 0.04 from holding Enersize Oy or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mavshack publ AB vs. Enersize Oy
Performance |
| Timeline |
| Mavshack publ AB |
| Enersize Oy |
Mavshack Publ and Enersize Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mavshack Publ and Enersize
The main advantage of trading using opposite Mavshack Publ and Enersize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mavshack Publ position performs unexpectedly, Enersize 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 Enersize will offset losses from the drop in Enersize's long position.| Mavshack Publ vs. Eniro AB | Mavshack Publ vs. Kancera AB | Mavshack Publ vs. Cortus Energy AB | Mavshack Publ vs. Mantex 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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