Correlation Between Embracer Group and Starbreeze
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By analyzing existing cross correlation between Embracer Group AB and Starbreeze AB, you can compare the effects of market volatilities on Embracer Group and Starbreeze 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 Starbreeze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Starbreeze.
Diversification Opportunities for Embracer Group and Starbreeze
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Starbreeze is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Starbreeze AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbreeze AB 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 Starbreeze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbreeze AB has no effect on the direction of Embracer Group i.e., Embracer Group and Starbreeze go up and down completely randomly.
Pair Corralation between Embracer Group and Starbreeze
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.42 times more return on investment than Starbreeze. However, Embracer Group AB is 2.4 times less risky than Starbreeze. It trades about 0.09 of its potential returns per unit of risk. Starbreeze AB is currently generating about -0.02 per unit of risk. If you would invest 2,296 in Embracer Group AB on September 24, 2024 and sell it today you would earn a total of 744.00 from holding Embracer Group AB or generate 32.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Embracer Group AB vs. Starbreeze AB
Performance |
Timeline |
Embracer Group AB |
Starbreeze AB |
Embracer Group and Starbreeze Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Embracer Group and Starbreeze
The main advantage of trading using opposite Embracer Group and Starbreeze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Starbreeze 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 Starbreeze will offset losses from the drop in Starbreeze's long position.Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Sinch AB | Embracer Group vs. Zaptec AS | Embracer Group vs. Evolution AB |
Starbreeze vs. Samhllsbyggnadsbolaget i Norden | Starbreeze vs. Sinch AB | Starbreeze vs. Zaptec AS | Starbreeze vs. Evolution 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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