Correlation Between Eniro AB and Mavshack Publ

Can any of the company-specific risk be diversified away by investing in both Eniro AB and Mavshack Publ 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 Eniro AB and Mavshack Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eniro AB and Mavshack publ AB, you can compare the effects of market volatilities on Eniro AB and Mavshack Publ 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 Eniro AB with a short position of Mavshack Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eniro AB and Mavshack Publ.

Diversification Opportunities for Eniro AB and Mavshack Publ

-0.47

Correlation Coefficient

Eniro AB  Mavshack Publ

Very good diversification

The 3 months correlation between Eniro and Mavshack is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eniro AB and Mavshack publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavshack publ AB and Eniro AB 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 Eniro AB are associated (or correlated) with Mavshack Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavshack publ AB has no effect on the direction of Eniro AB i.e., Eniro AB and Mavshack Publ go up and down completely randomly.

Pair Corralation between Eniro AB and Mavshack Publ

Assuming the 90 days trading horizon Eniro AB is expected to generate 0.34 times more return on investment than Mavshack Publ. However, Eniro AB is 2.9 times less risky than Mavshack Publ. It trades about -0.01 of its potential returns per unit of risk. Mavshack publ AB is currently generating about -0.07 per unit of risk. If you would invest  50.00  in Eniro AB on September 1, 2024 and sell it today you would lose (3.00) from holding Eniro AB or give up 6.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Eniro AB  vs.  Mavshack publ AB

Eniro AB

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eniro AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Eniro AB may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Mavshack publ AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mavshack publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Eniro AB and Mavshack Publ

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

The idea behind Eniro AB and Mavshack publ AB 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.

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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.