Correlation Between EON SE and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both EON SE and KENEDIX OFFICE 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 KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EON SE and KENEDIX OFFICE INV, you can compare the effects of market volatilities on EON SE and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of EON SE and KENEDIX OFFICE.
Diversification Opportunities for EON SE and KENEDIX OFFICE
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between EON and KENEDIX is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding EON SE and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of EON SE i.e., EON SE and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between EON SE and KENEDIX OFFICE
Assuming the 90 days trading horizon EON SE is expected to generate 1.6 times more return on investment than KENEDIX OFFICE. However, EON SE is 1.6 times more volatile than KENEDIX OFFICE INV. It trades about 0.13 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about 0.03 per unit of risk. If you would invest 1,100 in EON SE on December 29, 2024 and sell it today you would earn a total of 270.00 from holding EON SE or generate 24.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
EON SE vs. KENEDIX OFFICE INV
Performance |
Timeline |
EON SE |
KENEDIX OFFICE INV |
EON SE and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EON SE and KENEDIX OFFICE
The main advantage of trading using opposite EON SE and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EON SE position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.EON SE vs. USWE SPORTS AB | EON SE vs. Playa Hotels Resorts | EON SE vs. Ross Stores | EON SE vs. PLAYMATES TOYS |
KENEDIX OFFICE vs. SBA Communications Corp | KENEDIX OFFICE vs. INTERSHOP Communications Aktiengesellschaft | KENEDIX OFFICE vs. X FAB Silicon Foundries | KENEDIX OFFICE vs. FANDIFI TECHNOLOGY P |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |