Correlation Between OPUS GLOBAL and EON SE
Can any of the company-specific risk be diversified away by investing in both OPUS GLOBAL and EON SE 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 OPUS GLOBAL and EON SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPUS GLOBAL Nyrt and EON SE, you can compare the effects of market volatilities on OPUS GLOBAL and EON SE 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 OPUS GLOBAL with a short position of EON SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPUS GLOBAL and EON SE.
Diversification Opportunities for OPUS GLOBAL and EON SE
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OPUS and EON is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding OPUS GLOBAL Nyrt and EON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EON SE and OPUS GLOBAL 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 OPUS GLOBAL Nyrt are associated (or correlated) with EON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EON SE has no effect on the direction of OPUS GLOBAL i.e., OPUS GLOBAL and EON SE go up and down completely randomly.
Pair Corralation between OPUS GLOBAL and EON SE
Assuming the 90 days trading horizon OPUS GLOBAL is expected to generate 303.2 times less return on investment than EON SE. But when comparing it to its historical volatility, OPUS GLOBAL Nyrt is 112.94 times less risky than EON SE. It trades about 0.14 of its potential returns per unit of risk. EON SE is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 398,552 in EON SE on August 31, 2024 and sell it today you would earn a total of 97,948 from holding EON SE or generate 24.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 47.72% |
| Values | Daily Returns |
OPUS GLOBAL Nyrt vs. EON SE
Performance |
| Timeline |
| OPUS GLOBAL Nyrt |
| EON SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OPUS GLOBAL and EON SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPUS GLOBAL and EON SE
The main advantage of trading using opposite OPUS GLOBAL and EON SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPUS GLOBAL position performs unexpectedly, EON SE 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 EON SE will offset losses from the drop in EON SE's long position.| OPUS GLOBAL vs. Delta Technologies Nyrt | OPUS GLOBAL vs. ENEFI Energiahatekonysagi Nyrt | OPUS GLOBAL vs. FuturAqua Mineral Water | OPUS GLOBAL vs. OTP Bank Nyrt |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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