Correlation Between SOFTWARE MANSION and E Shopping
Can any of the company-specific risk be diversified away by investing in both SOFTWARE MANSION and E Shopping 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 SOFTWARE MANSION and E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFTWARE MANSION SPOLKA and E shopping Group SA, you can compare the effects of market volatilities on SOFTWARE MANSION and E Shopping 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 SOFTWARE MANSION with a short position of E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFTWARE MANSION and E Shopping.
Diversification Opportunities for SOFTWARE MANSION and E Shopping
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOFTWARE and ESG is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SOFTWARE MANSION SPOLKA and E shopping Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E shopping Group and SOFTWARE MANSION 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 SOFTWARE MANSION SPOLKA are associated (or correlated) with E Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E shopping Group has no effect on the direction of SOFTWARE MANSION i.e., SOFTWARE MANSION and E Shopping go up and down completely randomly.
Pair Corralation between SOFTWARE MANSION and E Shopping
Assuming the 90 days trading horizon SOFTWARE MANSION SPOLKA is expected to generate 0.49 times more return on investment than E Shopping. However, SOFTWARE MANSION SPOLKA is 2.05 times less risky than E Shopping. It trades about 0.02 of its potential returns per unit of risk. E shopping Group SA is currently generating about 0.0 per unit of risk. If you would invest 2,896 in SOFTWARE MANSION SPOLKA on November 8, 2024 and sell it today you would earn a total of 14.00 from holding SOFTWARE MANSION SPOLKA or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.12% |
| Values | Daily Returns |
SOFTWARE MANSION SPOLKA vs. E shopping Group SA
Performance |
| Timeline |
| SOFTWARE MANSION SPOLKA |
| E shopping Group |
SOFTWARE MANSION and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFTWARE MANSION and E Shopping
The main advantage of trading using opposite SOFTWARE MANSION and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFTWARE MANSION position performs unexpectedly, E Shopping 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 E Shopping will offset losses from the drop in E Shopping's long position.| SOFTWARE MANSION vs. Pyramid Games SA | SOFTWARE MANSION vs. Alior Bank SA | SOFTWARE MANSION vs. Mercator Medical SA | SOFTWARE MANSION vs. Ultimate Games SA |
| E Shopping vs. LSI Software SA | E Shopping vs. Ultimate Games SA | E Shopping vs. Drago entertainment SA | E Shopping vs. PLAYWAY 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 CEOs Directory module to screen CEOs from public companies around the world.
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