Correlation Between Naked Wines and ENSTAR
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By analyzing existing cross correlation between Naked Wines plc and ENSTAR FIN LLC, you can compare the effects of market volatilities on Naked Wines and ENSTAR 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 Naked Wines with a short position of ENSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and ENSTAR.
Diversification Opportunities for Naked Wines and ENSTAR
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Naked and ENSTAR is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and ENSTAR FIN LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENSTAR FIN LLC and Naked Wines 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 Naked Wines plc are associated (or correlated) with ENSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENSTAR FIN LLC has no effect on the direction of Naked Wines i.e., Naked Wines and ENSTAR go up and down completely randomly.
Pair Corralation between Naked Wines and ENSTAR
If you would invest 271.00 in Naked Wines plc on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Naked Wines plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Naked Wines plc vs. ENSTAR FIN LLC
Performance |
| Timeline |
| Naked Wines plc |
| ENSTAR FIN LLC |
Naked Wines and ENSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and ENSTAR
The main advantage of trading using opposite Naked Wines and ENSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines position performs unexpectedly, ENSTAR 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 ENSTAR will offset losses from the drop in ENSTAR's long position.| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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