Correlation Between Thunderful Group and Enad Global
Can any of the company-specific risk be diversified away by investing in both Thunderful 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 Thunderful 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 Thunderful Group AB and Enad Global 7, you can compare the effects of market volatilities on Thunderful 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 Thunderful Group with a short position of Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunderful Group and Enad Global.
Diversification Opportunities for Thunderful Group and Enad Global
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thunderful and Enad is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thunderful 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 Thunderful 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 Thunderful 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 Thunderful Group i.e., Thunderful Group and Enad Global go up and down completely randomly.
Pair Corralation between Thunderful Group and Enad Global
Assuming the 90 days trading horizon Thunderful Group AB is expected to under-perform the Enad Global. In addition to that, Thunderful Group is 2.04 times more volatile than Enad Global 7. It trades about -0.09 of its total potential returns per unit of risk. Enad Global 7 is currently generating about 0.01 per unit of volatility. If you would invest 1,466 in Enad Global 7 on August 29, 2024 and sell it today you would lose (76.00) from holding Enad Global 7 or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunderful Group AB vs. Enad Global 7
Performance |
| Timeline |
| Thunderful Group |
| Enad Global 7 |
Thunderful Group and Enad Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunderful Group and Enad Global
The main advantage of trading using opposite Thunderful Group and Enad Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunderful 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.| Thunderful Group vs. Stillfront Group AB | Thunderful Group vs. Embracer Group AB | Thunderful Group vs. Enad Global 7 | Thunderful Group vs. Kambi Group PLC |
| Enad Global vs. Stillfront Group AB | Enad Global vs. Embracer Group AB | Enad Global vs. G5 Entertainment publ | Enad Global vs. Sinch AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |