Correlation Between Energa Innovacin and AmRest Holdings
Can any of the company-specific risk be diversified away by investing in both Energa Innovacin and AmRest Holdings 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 Energa Innovacin and AmRest Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energa Innovacin y and AmRest Holdings SE, you can compare the effects of market volatilities on Energa Innovacin and AmRest Holdings 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 Energa Innovacin with a short position of AmRest Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energa Innovacin and AmRest Holdings.
Diversification Opportunities for Energa Innovacin and AmRest Holdings
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energa and AmRest is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Energa Innovacin y and AmRest Holdings SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmRest Holdings SE and Energa Innovacin 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 Energa Innovacin y are associated (or correlated) with AmRest Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmRest Holdings SE has no effect on the direction of Energa Innovacin i.e., Energa Innovacin and AmRest Holdings go up and down completely randomly.
Pair Corralation between Energa Innovacin and AmRest Holdings
Assuming the 90 days trading horizon Energa Innovacin y is expected to under-perform the AmRest Holdings. In addition to that, Energa Innovacin is 3.53 times more volatile than AmRest Holdings SE. It trades about -0.32 of its total potential returns per unit of risk. AmRest Holdings SE is currently generating about 0.2 per unit of volatility. If you would invest 550.00 in AmRest Holdings SE on February 7, 2024 and sell it today you would earn a total of 58.00 from holding AmRest Holdings SE or generate 10.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Energa Innovacin y vs. AmRest Holdings SE
Performance |
Timeline |
Energa Innovacin y |
AmRest Holdings SE |
Energa Innovacin and AmRest Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Energa Innovacin and AmRest Holdings
The main advantage of trading using opposite Energa Innovacin and AmRest Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energa Innovacin position performs unexpectedly, AmRest Holdings 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 AmRest Holdings will offset losses from the drop in AmRest Holdings' long position.Energa Innovacin vs. Atresmedia Corporacin de | Energa Innovacin vs. Azaria Rental SOCIMI | Energa Innovacin vs. Aedas Homes SL | Energa Innovacin vs. All Iron Re |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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