Correlation Between SYSTEMAIR and EMBARK EDUCATION

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

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

Diversification Opportunities for SYSTEMAIR and EMBARK EDUCATION

0.0

Correlation Coefficient

SYSTEMAIR  EMBARK EDUCATION

Pay attention - limited upside

The 3 months correlation between SYSTEMAIR and EMBARK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SYSTEMAIR AB and EMBARK EDUCATION LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMBARK EDUCATION LTD and SYSTEMAIR 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 SYSTEMAIR AB are associated (or correlated) with EMBARK EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMBARK EDUCATION LTD has no effect on the direction of SYSTEMAIR i.e., SYSTEMAIR and EMBARK EDUCATION go up and down completely randomly.

Pair Corralation between SYSTEMAIR and EMBARK EDUCATION

If you would invest  699.00  in SYSTEMAIR AB on April 24, 2025 and sell it today you would earn a total of  133.00  from holding SYSTEMAIR AB or generate 19.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SYSTEMAIR AB  vs.  EMBARK EDUCATION LTD

SYSTEMAIR AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SYSTEMAIR AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SYSTEMAIR reported solid returns over the last few months and may actually be approaching a breakup point.

EMBARK EDUCATION LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days EMBARK EDUCATION LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EMBARK EDUCATION is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SYSTEMAIR and EMBARK EDUCATION

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

The idea behind SYSTEMAIR AB and EMBARK EDUCATION LTD 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.