Correlation Between Xilam Animation and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both Xilam Animation and Ekinops SA 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 Xilam Animation and Ekinops SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xilam Animation and Ekinops SA, you can compare the effects of market volatilities on Xilam Animation and Ekinops SA 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 Xilam Animation with a short position of Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilam Animation and Ekinops SA.
Diversification Opportunities for Xilam Animation and Ekinops SA
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xilam and Ekinops is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xilam Animation and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA and Xilam Animation 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 Xilam Animation are associated (or correlated) with Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of Xilam Animation i.e., Xilam Animation and Ekinops SA go up and down completely randomly.
Pair Corralation between Xilam Animation and Ekinops SA
Assuming the 90 days trading horizon Xilam Animation is expected to under-perform the Ekinops SA. In addition to that, Xilam Animation is 1.51 times more volatile than Ekinops SA. It trades about -0.08 of its total potential returns per unit of risk. Ekinops SA is currently generating about -0.03 per unit of volatility. If you would invest 708.00 in Ekinops SA on August 27, 2024 and sell it today you would lose (315.00) from holding Ekinops SA or give up 44.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilam Animation vs. Ekinops SA
Performance |
| Timeline |
| Xilam Animation |
| Ekinops SA |
Xilam Animation and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilam Animation and Ekinops SA
The main advantage of trading using opposite Xilam Animation and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilam Animation position performs unexpectedly, Ekinops SA 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.| Xilam Animation vs. BigBen Interactive | Xilam Animation vs. Trigano SA | Xilam Animation vs. Chargeurs SA | Xilam Animation vs. Mersen SA |
| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets |