Correlation Between Better Collective and Enad Global
Can any of the company-specific risk be diversified away by investing in both Better Collective and Enad Global 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 Better Collective and Enad Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Better Collective and Enad Global 7, you can compare the effects of market volatilities on Better Collective and Enad Global 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 Better Collective with a short position of Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Better Collective and Enad Global.
Diversification Opportunities for Better Collective and Enad Global
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Better and Enad is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Better Collective and Enad Global 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enad Global 7 and Better Collective 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 Better Collective are associated (or correlated) with Enad Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enad Global 7 has no effect on the direction of Better Collective i.e., Better Collective and Enad Global go up and down completely randomly.
Pair Corralation between Better Collective and Enad Global
Assuming the 90 days trading horizon Better Collective is expected to generate 1.17 times more return on investment than Enad Global. However, Better Collective is 1.17 times more volatile than Enad Global 7. It trades about -0.04 of its potential returns per unit of risk. Enad Global 7 is currently generating about -0.27 per unit of risk. If you would invest 11,760 in Better Collective on December 3, 2024 and sell it today you would lose (740.00) from holding Better Collective or give up 6.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Better Collective vs. Enad Global 7
Performance |
Timeline |
Better Collective |
Enad Global 7 |
Better Collective and Enad Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Better Collective and Enad Global
The main advantage of trading using opposite Better Collective and Enad Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Better Collective position performs unexpectedly, Enad Global 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 Enad Global will offset losses from the drop in Enad Global's long position.Better Collective vs. Catena Media plc | Better Collective vs. Kambi Group PLC | Better Collective vs. Betsson AB | Better Collective vs. Invisio Communications AB |
Enad Global vs. Stillfront Group AB | Enad Global vs. Embracer Group AB | Enad Global vs. G5 Entertainment publ | Enad Global vs. Sinch 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Global Correlations Find global opportunities by holding instruments from different markets |