Correlation Between NOTE AB and Enea AB
Can any of the company-specific risk be diversified away by investing in both NOTE 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 NOTE 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 NOTE AB and Enea AB, you can compare the effects of market volatilities on NOTE 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 NOTE AB with a short position of Enea AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of NOTE AB and Enea AB.
Diversification Opportunities for NOTE AB and Enea AB
Very weak diversification
The 3 months correlation between NOTE and Enea is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding NOTE AB and Enea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enea AB and NOTE 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 NOTE 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 NOTE AB i.e., NOTE AB and Enea AB go up and down completely randomly.
Pair Corralation between NOTE AB and Enea AB
Assuming the 90 days trading horizon NOTE AB is expected to generate 0.82 times more return on investment than Enea AB. However, NOTE AB is 1.22 times less risky than Enea AB. It trades about -0.03 of its potential returns per unit of risk. Enea AB is currently generating about -0.11 per unit of risk. If you would invest 13,300 in NOTE AB on August 28, 2024 and sell it today you would lose (180.00) from holding NOTE AB or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NOTE AB vs. Enea AB
Performance |
| Timeline |
| NOTE AB |
| Enea AB |
NOTE AB and Enea AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NOTE AB and Enea AB
The main advantage of trading using opposite NOTE AB and Enea AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NOTE 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.| NOTE AB vs. Investment AB Oresund | NOTE AB vs. Havsfrun Investment AB | NOTE AB vs. Vitec Software Group | NOTE AB vs. Qleanair Holding AB |
| Enea AB vs. Novotek AB | Enea AB vs. Addnode Group AB | Enea AB vs. Softronic AB | Enea AB vs. CTT Systems 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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