Correlation Between Electromagnetica and Fondul Deschis
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By analyzing existing cross correlation between Electromagnetica SA and Fondul Deschis De, you can compare the effects of market volatilities on Electromagnetica and Fondul Deschis 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 Electromagnetica with a short position of Fondul Deschis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromagnetica and Fondul Deschis.
Diversification Opportunities for Electromagnetica and Fondul Deschis
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Electromagnetica and Fondul is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Electromagnetica SA and Fondul Deschis De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fondul Deschis De and Electromagnetica 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 Electromagnetica SA are associated (or correlated) with Fondul Deschis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fondul Deschis De has no effect on the direction of Electromagnetica i.e., Electromagnetica and Fondul Deschis go up and down completely randomly.
Pair Corralation between Electromagnetica and Fondul Deschis
Assuming the 90 days trading horizon Electromagnetica SA is expected to generate 3.87 times more return on investment than Fondul Deschis. However, Electromagnetica is 3.87 times more volatile than Fondul Deschis De. It trades about 0.04 of its potential returns per unit of risk. Fondul Deschis De is currently generating about 0.1 per unit of risk. If you would invest 15.00 in Electromagnetica SA on September 26, 2024 and sell it today you would earn a total of 6.00 from holding Electromagnetica SA or generate 40.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 97.57% |
Values | Daily Returns |
Electromagnetica SA vs. Fondul Deschis De
Performance |
Timeline |
Electromagnetica |
Fondul Deschis De |
Electromagnetica and Fondul Deschis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Electromagnetica and Fondul Deschis
The main advantage of trading using opposite Electromagnetica and Fondul Deschis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromagnetica position performs unexpectedly, Fondul Deschis 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 Fondul Deschis will offset losses from the drop in Fondul Deschis' long position.Electromagnetica vs. Oil Terminal C | Electromagnetica vs. Antibiotice Ia | Electromagnetica vs. Aages SA | Electromagnetica vs. Alumil Rom Industry |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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