Correlation Between Ebusco Holding and Exor NV

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Can any of the company-specific risk be diversified away by investing in both Ebusco Holding and Exor NV 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 Ebusco Holding and Exor NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebusco Holding BV and Exor NV, you can compare the effects of market volatilities on Ebusco Holding and Exor NV 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 Ebusco Holding with a short position of Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebusco Holding and Exor NV.

Diversification Opportunities for Ebusco Holding and Exor NV

EbuscoExorDiversified AwayEbuscoExorDiversified Away100%
0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ebusco and Exor is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ebusco Holding BV and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV and Ebusco Holding 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 Ebusco Holding BV are associated (or correlated) with Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of Ebusco Holding i.e., Ebusco Holding and Exor NV go up and down completely randomly.

Pair Corralation between Ebusco Holding and Exor NV

Assuming the 90 days trading horizon Ebusco Holding BV is expected to under-perform the Exor NV. In addition to that, Ebusco Holding is 11.4 times more volatile than Exor NV. It trades about -0.06 of its total potential returns per unit of risk. Exor NV is currently generating about -0.12 per unit of volatility. If you would invest  9,930  in Exor NV on September 19, 2024 and sell it today you would lose (1,005) from holding Exor NV or give up 10.12% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.46%
ValuesDaily Returns

Ebusco Holding BV  vs.  Exor NV

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -60-40-200
JavaScript chart by amCharts 3.21.15EBUS EXO
       Timeline  
Ebusco Holding BV 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ebusco Holding BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec11.522.533.54
Exor NV 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Exor NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec9092949698100102

Ebusco Holding and Exor NV Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-23.26-17.42-11.58-5.74-0.09735.310.7816.2621.7527.23 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15EBUS EXO
       Returns  

Pair Trading with Ebusco Holding and Exor NV

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

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