Correlation Between Elaia Investment and Squirrel Media
Can any of the company-specific risk be diversified away by investing in both Elaia Investment and Squirrel Media 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 Elaia Investment and Squirrel Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elaia Investment Spain and Squirrel Media SA, you can compare the effects of market volatilities on Elaia Investment and Squirrel Media 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 Elaia Investment with a short position of Squirrel Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elaia Investment and Squirrel Media.
Diversification Opportunities for Elaia Investment and Squirrel Media
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Elaia and Squirrel is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Elaia Investment Spain and Squirrel Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squirrel Media SA and Elaia Investment 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 Elaia Investment Spain are associated (or correlated) with Squirrel Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squirrel Media SA has no effect on the direction of Elaia Investment i.e., Elaia Investment and Squirrel Media go up and down completely randomly.
Pair Corralation between Elaia Investment and Squirrel Media
Assuming the 90 days trading horizon Elaia Investment Spain is expected to under-perform the Squirrel Media. In addition to that, Elaia Investment is 2.65 times more volatile than Squirrel Media SA. It trades about -0.21 of its total potential returns per unit of risk. Squirrel Media SA is currently generating about -0.1 per unit of volatility. If you would invest 141.00 in Squirrel Media SA on August 24, 2024 and sell it today you would lose (6.00) from holding Squirrel Media SA or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elaia Investment Spain vs. Squirrel Media SA
Performance |
| Timeline |
| Elaia Investment Spain |
| Squirrel Media SA |
Elaia Investment and Squirrel Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elaia Investment and Squirrel Media
The main advantage of trading using opposite Elaia Investment and Squirrel Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elaia Investment position performs unexpectedly, Squirrel Media 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 Squirrel Media will offset losses from the drop in Squirrel Media's long position.| Elaia Investment vs. Atrys Health SL | Elaia Investment vs. Cellnex Telecom SA | Elaia Investment vs. Neinor Homes SLU | Elaia Investment vs. Ebro Foods |
| Squirrel Media vs. Amadeus IT Group | Squirrel Media vs. Indra A | Squirrel Media vs. Global Dominion Access | Squirrel Media vs. Amper SA |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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