Correlation Between UF Games and Enter Air
Can any of the company-specific risk be diversified away by investing in both UF Games 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 UF Games and Enter Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UF Games SA and Enter Air SA, you can compare the effects of market volatilities on UF Games 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 UF Games with a short position of Enter Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of UF Games and Enter Air.
Diversification Opportunities for UF Games and Enter Air
Excellent diversification
The 3 months correlation between UFG and Enter is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding UF Games SA 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 UF Games 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 UF Games SA 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 UF Games i.e., UF Games and Enter Air go up and down completely randomly.
Pair Corralation between UF Games and Enter Air
Assuming the 90 days trading horizon UF Games SA is expected to under-perform the Enter Air. In addition to that, UF Games is 1.13 times more volatile than Enter Air SA. It trades about -0.26 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 5,780 in Enter Air SA on August 30, 2024 and sell it today you would earn a total of 330.00 from holding Enter Air SA or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
UF Games SA vs. Enter Air SA
Performance |
| Timeline |
| UF Games SA |
| Enter Air SA |
UF Games and Enter Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UF Games and Enter Air
The main advantage of trading using opposite UF Games and Enter Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UF Games 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.| UF Games vs. Banco Santander SA | UF Games vs. UniCredit SpA | UF Games vs. CEZ as | UF Games vs. Polski Koncern Naftowy |
| Enter Air vs. GreenX Metals | Enter Air vs. Marie Brizard Wine | Enter Air vs. Centrum Finansowe Banku | Enter Air vs. SOFTWARE MANSION SPOLKA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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