Correlation Between Systemair and Antofagasta PLC
Can any of the company-specific risk be diversified away by investing in both Systemair and Antofagasta PLC 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 Antofagasta PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Antofagasta PLC, you can compare the effects of market volatilities on Systemair and Antofagasta PLC 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 Antofagasta PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Antofagasta PLC.
Diversification Opportunities for Systemair and Antofagasta PLC
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Systemair and Antofagasta is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Antofagasta PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta PLC 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 Antofagasta PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antofagasta PLC has no effect on the direction of Systemair i.e., Systemair and Antofagasta PLC go up and down completely randomly.
Pair Corralation between Systemair and Antofagasta PLC
Assuming the 90 days trading horizon Systemair AB is expected to under-perform the Antofagasta PLC. In addition to that, Systemair is 1.91 times more volatile than Antofagasta PLC. It trades about -0.1 of its total potential returns per unit of risk. Antofagasta PLC is currently generating about 0.26 per unit of volatility. If you would invest 161,800 in Antofagasta PLC on October 25, 2024 and sell it today you would earn a total of 12,350 from holding Antofagasta PLC or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Systemair AB vs. Antofagasta PLC
Performance |
| Timeline |
| Systemair AB |
| Antofagasta PLC |
Systemair and Antofagasta PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Antofagasta PLC
The main advantage of trading using opposite Systemair and Antofagasta PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Antofagasta PLC 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 Antofagasta PLC will offset losses from the drop in Antofagasta PLC's long position.| Systemair vs. BlackRock Frontiers Investment | Systemair vs. Capital Drilling | Systemair vs. JD Sports Fashion | Systemair vs. Creo Medical Group |
| Antofagasta PLC vs. Schroders Investment Trusts | Antofagasta PLC vs. Beazer Homes USA | Antofagasta PLC vs. Premier Foods PLC | Antofagasta PLC vs. DFS Furniture PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |