Correlation Between TEN SQUARE and Enter Air
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Enter Air 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 TEN SQUARE and Enter Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and Enter Air SA, you can compare the effects of market volatilities on TEN SQUARE and Enter Air 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 TEN SQUARE with a short position of Enter Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Enter Air.
Diversification Opportunities for TEN SQUARE and Enter Air
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TEN and Enter is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Enter Air SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enter Air SA and TEN SQUARE 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 TEN SQUARE GAMES are associated (or correlated) with Enter Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enter Air SA has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Enter Air go up and down completely randomly.
Pair Corralation between TEN SQUARE and Enter Air
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the Enter Air. In addition to that, TEN SQUARE is 1.05 times more volatile than Enter Air SA. It trades about -0.04 of its total potential returns per unit of risk. Enter Air SA is currently generating about 0.09 per unit of volatility. If you would invest 2,485 in Enter Air SA on September 4, 2024 and sell it today you would earn a total of 3,465 from holding Enter Air SA or generate 139.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Enter Air SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Enter Air SA |
TEN SQUARE and Enter Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Enter Air
The main advantage of trading using opposite TEN SQUARE and Enter Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Enter Air 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 Enter Air will offset losses from the drop in Enter Air's long position.| TEN SQUARE vs. Enter Air SA | TEN SQUARE vs. Mlk Foods Public | TEN SQUARE vs. Live Motion Games | TEN SQUARE vs. Intersport Polska SA |
| Enter Air vs. Banco Santander SA | Enter Air vs. UniCredit SpA | Enter Air vs. CEZ as | Enter Air vs. Polski Koncern Naftowy |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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