Correlation Between NOTE AB and EWork Group
Can any of the company-specific risk be diversified away by investing in both NOTE AB and EWork Group 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 EWork Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NOTE AB and eWork Group AB, you can compare the effects of market volatilities on NOTE AB and EWork 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 NOTE AB with a short position of EWork Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NOTE AB and EWork Group.
Diversification Opportunities for NOTE AB and EWork Group
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between NOTE and EWork is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding NOTE AB and eWork Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eWork Group 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 EWork Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eWork Group AB has no effect on the direction of NOTE AB i.e., NOTE AB and EWork Group go up and down completely randomly.
Pair Corralation between NOTE AB and EWork Group
Assuming the 90 days trading horizon NOTE AB is expected to under-perform the EWork Group. In addition to that, NOTE AB is 1.23 times more volatile than eWork Group AB. It trades about -0.01 of its total potential returns per unit of risk. eWork Group AB is currently generating about 0.03 per unit of volatility. If you would invest 11,461 in eWork Group AB on September 3, 2024 and sell it today you would earn a total of 2,439 from holding eWork Group AB or generate 21.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NOTE AB vs. eWork Group AB
Performance |
| Timeline |
| NOTE AB |
| eWork Group AB |
NOTE AB and EWork Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NOTE AB and EWork Group
The main advantage of trading using opposite NOTE AB and EWork Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NOTE AB position performs unexpectedly, EWork 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 EWork Group will offset losses from the drop in EWork Group's long position.| NOTE AB vs. Arctic Blue Beverages | NOTE AB vs. JLT Mobile Computers | NOTE AB vs. Invisio Communications AB | NOTE AB vs. FormPipe Software AB |
| EWork Group vs. Novotek AB | EWork Group vs. Addnode Group AB | EWork Group vs. Softronic AB | EWork Group 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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