Correlation Between Enzymatica Publ and NOTE AB

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

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

Diversification Opportunities for Enzymatica Publ and NOTE AB

-0.53

Correlation Coefficient

Enzymatica Publ  NOTE AB

Excellent diversification

The 3 months correlation between Enzymatica and NOTE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Enzymatica publ AB and NOTE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOTE AB and Enzymatica Publ 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 Enzymatica publ AB are associated (or correlated) with NOTE AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOTE AB has no effect on the direction of Enzymatica Publ i.e., Enzymatica Publ and NOTE AB go up and down completely randomly.

Pair Corralation between Enzymatica Publ and NOTE AB

Assuming the 90 days trading horizon Enzymatica publ AB is expected to under-perform the NOTE AB. In addition to that, Enzymatica Publ is 1.8 times more volatile than NOTE AB. It trades about -0.02 of its total potential returns per unit of risk. NOTE AB is currently generating about 0.0 per unit of volatility. If you would invest  17,610  in NOTE AB on September 18, 2024 and sell it today you would lose (2,920) from holding NOTE AB or give up 16.58% of portfolio value over 90 days.

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

Enzymatica publ AB  vs.  NOTE AB

Enzymatica publ AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enzymatica 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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

NOTE AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NOTE AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, NOTE AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enzymatica Publ and NOTE AB

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

The idea behind Enzymatica publ AB and NOTE 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 Transaction History module to view history of all your transactions and understand their impact on performance.