Correlation Between Oeneo SA and Enertime SAS
Can any of the company-specific risk be diversified away by investing in both Oeneo SA and Enertime SAS 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 Oeneo SA and Enertime SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oeneo SA and Enertime SAS, you can compare the effects of market volatilities on Oeneo SA and Enertime SAS 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 Oeneo SA with a short position of Enertime SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oeneo SA and Enertime SAS.
Diversification Opportunities for Oeneo SA and Enertime SAS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oeneo and Enertime is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oeneo SA and Enertime SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enertime SAS and Oeneo SA 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 Oeneo SA are associated (or correlated) with Enertime SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enertime SAS has no effect on the direction of Oeneo SA i.e., Oeneo SA and Enertime SAS go up and down completely randomly.
Pair Corralation between Oeneo SA and Enertime SAS
Assuming the 90 days trading horizon Oeneo SA is expected to generate 0.19 times more return on investment than Enertime SAS. However, Oeneo SA is 5.14 times less risky than Enertime SAS. It trades about -0.05 of its potential returns per unit of risk. Enertime SAS is currently generating about -0.04 per unit of risk. If you would invest 1,290 in Oeneo SA on August 26, 2024 and sell it today you would lose (318.00) from holding Oeneo SA or give up 24.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Oeneo SA vs. Enertime SAS
Performance |
| Timeline |
| Oeneo SA |
| Enertime SAS |
Oeneo SA and Enertime SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oeneo SA and Enertime SAS
The main advantage of trading using opposite Oeneo SA and Enertime SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oeneo SA position performs unexpectedly, Enertime SAS 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 Enertime SAS will offset losses from the drop in Enertime SAS's long position.| Oeneo SA vs. Robertet SA | Oeneo SA vs. Virbac SA | Oeneo SA vs. Tonnellerie Francois Freres | Oeneo SA vs. Thermador Groupe SA |
| Enertime SAS vs. Prodways Group SA | Enertime SAS vs. Claranova SE | Enertime SAS vs. DBV Technologies SA | Enertime SAS vs. Manitou BF 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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