Correlation Between Embracer Group and Stille AB
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By analyzing existing cross correlation between Embracer Group AB and Stille AB, you can compare the effects of market volatilities on Embracer Group and Stille AB 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 Stille AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Stille AB.
Diversification Opportunities for Embracer Group and Stille AB
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Embracer and Stille is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Stille AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stille 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 Stille AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stille AB has no effect on the direction of Embracer Group i.e., Embracer Group and Stille AB go up and down completely randomly.
Pair Corralation between Embracer Group and Stille AB
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.8 times more return on investment than Stille AB. However, Embracer Group AB is 1.25 times less risky than Stille AB. It trades about 0.11 of its potential returns per unit of risk. Stille AB is currently generating about -0.03 per unit of risk. If you would invest 2,892 in Embracer Group AB on September 25, 2024 and sell it today you would earn a total of 148.00 from holding Embracer Group AB or generate 5.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Embracer Group AB vs. Stille AB
Performance |
Timeline |
Embracer Group AB |
Stille AB |
Embracer Group and Stille AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Embracer Group and Stille AB
The main advantage of trading using opposite Embracer Group and Stille AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Stille AB 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 Stille AB will offset losses from the drop in Stille AB's long position.Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Sinch AB | Embracer Group vs. Zaptec AS | Embracer Group vs. Evolution AB |
Stille AB vs. Sinch AB | Stille AB vs. Hexatronic Group AB | Stille AB vs. Surgical Science Sweden | Stille AB 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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