Correlation Between Stillfront Group and Enad Global
Can any of the company-specific risk be diversified away by investing in both Stillfront Group and Enad Global 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 Stillfront Group and Enad Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stillfront Group AB and Enad Global 7, you can compare the effects of market volatilities on Stillfront Group and Enad Global 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 Stillfront Group with a short position of Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and Enad Global.
Diversification Opportunities for Stillfront Group and Enad Global
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stillfront and Enad is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Enad Global 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enad Global 7 and Stillfront Group 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 Stillfront Group AB are associated (or correlated) with Enad Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enad Global 7 has no effect on the direction of Stillfront Group i.e., Stillfront Group and Enad Global go up and down completely randomly.
Pair Corralation between Stillfront Group and Enad Global
Assuming the 90 days horizon Stillfront Group AB is expected to under-perform the Enad Global. In addition to that, Stillfront Group is 1.04 times more volatile than Enad Global 7. It trades about -0.03 of its total potential returns per unit of risk. Enad Global 7 is currently generating about 0.04 per unit of volatility. If you would invest 1,365 in Enad Global 7 on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Enad Global 7 or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stillfront Group AB vs. Enad Global 7
Performance |
| Timeline |
| Stillfront Group |
| Enad Global 7 |
Stillfront Group and Enad Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and Enad Global
The main advantage of trading using opposite Stillfront Group and Enad Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group position performs unexpectedly, Enad Global 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 Enad Global will offset losses from the drop in Enad Global's long position.| Stillfront Group vs. Embracer Group AB | Stillfront Group vs. Sinch AB | Stillfront Group vs. Paradox Interactive AB | Stillfront Group vs. Evolution AB |
| Enad Global vs. Flexion Mobile PLC | Enad Global vs. iZafe Group AB | Enad Global vs. KABE Group AB | Enad Global vs. IAR Systems Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |