Correlation Between TESCO PLC and Easy Software

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

By analyzing existing cross correlation between TESCO PLC LS 0633333 and Easy Software AG, you can compare the effects of market volatilities on TESCO PLC and Easy Software 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 TESCO PLC with a short position of Easy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of TESCO PLC and Easy Software.

Diversification Opportunities for TESCO PLC and Easy Software

0.55

Correlation Coefficient

TESCO PLC  Easy Software

Very weak diversification

The 3 months correlation between TESCO and Easy is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding TESCO PLC LS 0633333 and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software AG and TESCO PLC 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 TESCO PLC LS 0633333 are associated (or correlated) with Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of TESCO PLC i.e., TESCO PLC and Easy Software go up and down completely randomly.

Pair Corralation between TESCO PLC and Easy Software

Assuming the 90 days trading horizon TESCO PLC LS 0633333 is expected to generate 0.66 times more return on investment than Easy Software. However, TESCO PLC LS 0633333 is 1.52 times less risky than Easy Software. It trades about 0.19 of its potential returns per unit of risk. Easy Software AG is currently generating about 0.06 per unit of risk. If you would invest  411.00  in TESCO PLC LS 0633333 on April 24, 2025 and sell it today you would earn a total of  79.00  from holding TESCO PLC LS 0633333 or generate 19.22% return on investment over 90 days.

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

TESCO PLC LS 0633333  vs.  Easy Software AG

TESCO PLC LS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TESCO PLC LS 0633333 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, TESCO PLC reported solid returns over the last few months and may actually be approaching a breakup point.

Easy Software AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Easy Software AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Easy Software may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TESCO PLC and Easy Software

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

The idea behind TESCO PLC LS 0633333 and Easy Software AG 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.

Check out your portfolio center.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.