Correlation Between Ekinops SA and AST Groupe

Can any of the company-specific risk be diversified away by investing in both Ekinops SA and AST Groupe 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 Ekinops SA and AST Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ekinops SA and AST Groupe, you can compare the effects of market volatilities on Ekinops SA and AST Groupe 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 Ekinops SA with a short position of AST Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and AST Groupe.

Diversification Opportunities for Ekinops SA and AST Groupe

0.0

Correlation Coefficient

Ekinops SA  AST Groupe

Pay attention - limited upside

The 3 months correlation between Ekinops and AST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and AST Groupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AST Groupe and Ekinops SA 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 Ekinops SA are associated (or correlated) with AST Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AST Groupe has no effect on the direction of Ekinops SA i.e., Ekinops SA and AST Groupe go up and down completely randomly.

Pair Corralation between Ekinops SA and AST Groupe

If you would invest  48.00  in AST Groupe on October 27, 2024 and sell it today you would earn a total of  0.00  from holding AST Groupe or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Ekinops SA  vs.  AST Groupe

Ekinops SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ekinops SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

AST Groupe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AST Groupe has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, AST Groupe is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ekinops SA and AST Groupe

The main advantage of trading using opposite Ekinops SA and AST Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, AST Groupe 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 AST Groupe will offset losses from the drop in AST Groupe's long position.

The idea behind Ekinops SA and AST Groupe 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.