Correlation Between Embracer Group and Implantica
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By analyzing existing cross correlation between Embracer Group AB and Implantica AG, you can compare the effects of market volatilities on Embracer Group and Implantica 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 Embracer Group with a short position of Implantica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Implantica.
Diversification Opportunities for Embracer Group and Implantica
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Embracer and Implantica is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Implantica AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implantica AG and Embracer Group 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 Embracer Group AB are associated (or correlated) with Implantica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implantica AG has no effect on the direction of Embracer Group i.e., Embracer Group and Implantica go up and down completely randomly.
Pair Corralation between Embracer Group and Implantica
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 1.07 times more return on investment than Implantica. However, Embracer Group is 1.07 times more volatile than Implantica AG. It trades about 0.11 of its potential returns per unit of risk. Implantica AG is currently generating about -0.08 per unit of risk. If you would invest 2,536 in Embracer Group AB on September 24, 2024 and sell it today you would earn a total of 504.00 from holding Embracer Group AB or generate 19.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Embracer Group AB vs. Implantica AG
Performance |
Timeline |
Embracer Group AB |
Implantica AG |
Embracer Group and Implantica Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Embracer Group and Implantica
The main advantage of trading using opposite Embracer Group and Implantica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Implantica 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 Implantica will offset losses from the drop in Implantica's long position.Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Sinch AB | Embracer Group vs. Zaptec AS | Embracer Group vs. Evolution AB |
Implantica vs. Sinch AB | Implantica vs. Hexatronic Group AB | Implantica vs. Surgical Science Sweden | Implantica vs. Embracer 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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