Correlation Between Zignsec AB and Embracer Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zignsec AB and Embracer Group AB, you can compare the effects of market volatilities on Zignsec AB and Embracer Group 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 Zignsec AB with a short position of Embracer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zignsec AB and Embracer Group.
Diversification Opportunities for Zignsec AB and Embracer Group
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zignsec and Embracer is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zignsec AB and Embracer Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embracer Group AB and Zignsec AB 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 Zignsec AB are associated (or correlated) with Embracer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embracer Group AB has no effect on the direction of Zignsec AB i.e., Zignsec AB and Embracer Group go up and down completely randomly.
Pair Corralation between Zignsec AB and Embracer Group
Assuming the 90 days trading horizon Zignsec AB is expected to generate 1.85 times more return on investment than Embracer Group. However, Zignsec AB is 1.85 times more volatile than Embracer Group AB. It trades about 0.02 of its potential returns per unit of risk. Embracer Group AB is currently generating about 0.0 per unit of risk. If you would invest 286.00 in Zignsec AB on September 3, 2024 and sell it today you would lose (150.00) from holding Zignsec AB or give up 52.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zignsec AB vs. Embracer Group AB
Performance |
| Timeline |
| Zignsec AB |
| Embracer Group AB |
Zignsec AB and Embracer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zignsec AB and Embracer Group
The main advantage of trading using opposite Zignsec AB and Embracer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zignsec AB position performs unexpectedly, Embracer Group 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 Embracer Group will offset losses from the drop in Embracer Group's long position.| Zignsec AB vs. Smart Eye AB | Zignsec AB vs. Embracer Group AB | Zignsec AB vs. Zwipe AS | Zignsec AB vs. Sinch AB |
| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |