Correlation Between EEducation Albert and Embellence Group

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

By analyzing existing cross correlation between eEducation Albert AB and Embellence Group AB, you can compare the effects of market volatilities on EEducation Albert and Embellence Group 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 EEducation Albert with a short position of Embellence Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EEducation Albert and Embellence Group.

Diversification Opportunities for EEducation Albert and Embellence Group

-0.05

Correlation Coefficient

EEducation Albert  Embellence Group

Good diversification

The 3 months correlation between EEducation and Embellence is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding eEducation Albert AB and Embellence Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embellence Group and EEducation Albert 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 eEducation Albert AB are associated (or correlated) with Embellence Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embellence Group has no effect on the direction of EEducation Albert i.e., EEducation Albert and Embellence Group go up and down completely randomly.

Pair Corralation between EEducation Albert and Embellence Group

Assuming the 90 days trading horizon EEducation Albert is expected to generate 2.31 times less return on investment than Embellence Group. In addition to that, EEducation Albert is 2.84 times more volatile than Embellence Group AB. It trades about 0.02 of its total potential returns per unit of risk. Embellence Group AB is currently generating about 0.12 per unit of volatility. If you would invest  3,301  in Embellence Group AB on April 22, 2025 and sell it today you would earn a total of  459.00  from holding Embellence Group AB or generate 13.9% return on investment over 90 days.

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

eEducation Albert AB  vs.  Embellence Group AB

eEducation Albert

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in eEducation Albert AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, EEducation Albert is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Embellence Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Embellence Group AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, Embellence Group sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EEducation Albert and Embellence Group

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

The idea behind eEducation Albert AB and Embellence Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.