Correlation Between EVN AG and Semperit Aktiengesellscha

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

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

Diversification Opportunities for EVN AG and Semperit Aktiengesellscha

0.43

Correlation Coefficient

EVN AG  Semperit Aktiengesellscha

Very weak diversification

The 3 months correlation between EVN and Semperit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding EVN AG and Semperit Aktiengesellschaft Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semperit Aktiengesellscha and EVN AG 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 EVN AG are associated (or correlated) with Semperit Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semperit Aktiengesellscha has no effect on the direction of EVN AG i.e., EVN AG and Semperit Aktiengesellscha go up and down completely randomly.

Pair Corralation between EVN AG and Semperit Aktiengesellscha

Assuming the 90 days trading horizon EVN AG is expected to under-perform the Semperit Aktiengesellscha. In addition to that, EVN AG is 1.12 times more volatile than Semperit Aktiengesellschaft Holding. It trades about -0.29 of its total potential returns per unit of risk. Semperit Aktiengesellschaft Holding is currently generating about 0.01 per unit of volatility. If you would invest  1,184  in Semperit Aktiengesellschaft Holding on September 13, 2024 and sell it today you would earn a total of  2.00  from holding Semperit Aktiengesellschaft Holding or generate 0.17% return on investment over 90 days.

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

EVN AG  vs.  Semperit Aktiengesellschaft Ho

EVN AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EVN AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Semperit Aktiengesellscha

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Semperit Aktiengesellschaft Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Semperit Aktiengesellscha is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with EVN AG and Semperit Aktiengesellscha

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

The idea behind EVN AG and Semperit Aktiengesellschaft Holding 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.