Correlation Between OVH Groupe and Ekinops SA

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

By analyzing existing cross correlation between OVH Groupe SAS and Ekinops SA, you can compare the effects of market volatilities on OVH Groupe and Ekinops SA 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 OVH Groupe with a short position of Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of OVH Groupe and Ekinops SA.

Diversification Opportunities for OVH Groupe and Ekinops SA

-0.01

Correlation Coefficient

OVH Groupe  Ekinops SA

Good diversification

The 3 months correlation between OVH and Ekinops is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding OVH Groupe SAS and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA and OVH Groupe 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 OVH Groupe SAS are associated (or correlated) with Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of OVH Groupe i.e., OVH Groupe and Ekinops SA go up and down completely randomly.

Pair Corralation between OVH Groupe and Ekinops SA

Assuming the 90 days trading horizon OVH Groupe SAS is expected to under-perform the Ekinops SA. But the stock apears to be less risky and, when comparing its historical volatility, OVH Groupe SAS is 1.19 times less risky than Ekinops SA. The stock trades about -0.05 of its potential returns per unit of risk. The Ekinops SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  331.00  in Ekinops SA on April 25, 2025 and sell it today you would earn a total of  87.00  from holding Ekinops SA or generate 26.28% return on investment over 90 days.

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

OVH Groupe SAS  vs.  Ekinops SA

OVH Groupe SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days OVH Groupe SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Ekinops SA

Risk-Adjusted Performance

OK

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

Pair Trading with OVH Groupe and Ekinops SA

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

The idea behind OVH Groupe SAS and Ekinops SA 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.