Correlation Between Crescent and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both Crescent 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 Crescent and EVS Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent NV and EVS Broadcast Equipment, you can compare the effects of market volatilities on Crescent 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 Crescent with a short position of EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent and EVS Broadcast.
Diversification Opportunities for Crescent and EVS Broadcast
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Crescent and EVS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Crescent NV 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 Crescent 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 Crescent NV 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 Crescent i.e., Crescent and EVS Broadcast go up and down completely randomly.
Pair Corralation between Crescent and EVS Broadcast
Assuming the 90 days trading horizon Crescent NV is expected to under-perform the EVS Broadcast. In addition to that, Crescent is 2.99 times more volatile than EVS Broadcast Equipment. It trades about -0.01 of its total potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.06 per unit of volatility. If you would invest 1,962 in EVS Broadcast Equipment on September 3, 2024 and sell it today you would earn a total of 893.00 from holding EVS Broadcast Equipment or generate 45.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crescent NV vs. EVS Broadcast Equipment
Performance |
| Timeline |
| Crescent NV |
| EVS Broadcast Equipment |
Crescent and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent and EVS Broadcast
The main advantage of trading using opposite Crescent and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent 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.| Crescent vs. Exmar NV | Crescent vs. Iep Invest | Crescent vs. Unifiedpost Group SA | Crescent vs. Montea CVA |
| EVS Broadcast vs. Crescent NV | EVS Broadcast vs. Exmar NV | EVS Broadcast vs. Iep Invest | EVS Broadcast vs. Unifiedpost Group SA |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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