Correlation Between X Trade and E Shopping
Can any of the company-specific risk be diversified away by investing in both X Trade 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 X Trade and E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Trade Brokers and E shopping Group SA, you can compare the effects of market volatilities on X Trade 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 X Trade with a short position of E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and E Shopping.
Diversification Opportunities for X Trade and E Shopping
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTB and ESG is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers 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 X Trade 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 X Trade Brokers 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 X Trade i.e., X Trade and E Shopping go up and down completely randomly.
Pair Corralation between X Trade and E Shopping
Assuming the 90 days trading horizon X Trade Brokers is expected to generate 0.2 times more return on investment than E Shopping. However, X Trade Brokers is 5.09 times less risky than E Shopping. It trades about -0.03 of its potential returns per unit of risk. E shopping Group SA is currently generating about -0.04 per unit of risk. If you would invest 7,026 in X Trade Brokers on September 28, 2024 and sell it today you would lose (72.00) from holding X Trade Brokers or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Trade Brokers vs. E shopping Group SA
Performance |
| Timeline |
| X Trade Brokers |
| E shopping Group |
X Trade and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Trade and E Shopping
The main advantage of trading using opposite X Trade and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade 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.The idea behind X Trade Brokers and E shopping Group SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| E Shopping vs. Banco Santander SA | E Shopping vs. UniCredit SpA | E Shopping vs. CEZ as | E Shopping 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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