Correlation Between EON SE and EON SE

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

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

Diversification Opportunities for EON SE and EON SE

0.95

Correlation Coefficient

EON SE  EON SE

Almost no diversification

The 3 months correlation between EON and EON is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding EON SE and EON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EON SE and EON SE 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 EON SE are associated (or correlated) with EON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EON SE has no effect on the direction of EON SE i.e., EON SE and EON SE go up and down completely randomly.

Pair Corralation between EON SE and EON SE

Assuming the 90 days trading horizon EON SE is expected to generate 2.03 times more return on investment than EON SE. However, EON SE is 2.03 times more volatile than EON SE. It trades about 0.0 of its potential returns per unit of risk. EON SE is currently generating about -0.01 per unit of risk. If you would invest  1,220  in EON SE on September 1, 2024 and sell it today you would lose (40.00) from holding EON SE or give up 3.28% of portfolio value over 90 days.

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

EON SE  vs.  EON SE

EON SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EON SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

EON SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EON SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, EON SE is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with EON SE and EON SE

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

The idea behind EON SE and EON SE 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.