Correlation Between ABERFORTH SMCOS and PG +
Can any of the company-specific risk be diversified away by investing in both ABERFORTH SMCOS and PG + 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 ABERFORTH SMCOS and PG + into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABERFORTH SMCOS TRLS 01 and PG E P6, you can compare the effects of market volatilities on ABERFORTH SMCOS and PG + 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 ABERFORTH SMCOS with a short position of PG +. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABERFORTH SMCOS and PG +.
Diversification Opportunities for ABERFORTH SMCOS and PG +
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ABERFORTH and PCG6 is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ABERFORTH SMCOS TRLS 01 and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 and ABERFORTH SMCOS 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 ABERFORTH SMCOS TRLS 01 are associated (or correlated) with PG +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of ABERFORTH SMCOS i.e., ABERFORTH SMCOS and PG + go up and down completely randomly.
Pair Corralation between ABERFORTH SMCOS and PG +
Assuming the 90 days horizon ABERFORTH SMCOS TRLS 01 is expected to under-perform the PG +. But the stock apears to be less risky and, when comparing its historical volatility, ABERFORTH SMCOS TRLS 01 is 1.25 times less risky than PG +. The stock trades about -0.14 of its potential returns per unit of risk. The PG E P6 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,100 in PG E P6 on September 1, 2024 and sell it today you would earn a total of 60.00 from holding PG E P6 or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABERFORTH SMCOS TRLS 01 vs. PG E P6
Performance |
| Timeline |
| ABERFORTH SMCOS TRLS |
| PG E P6 |
ABERFORTH SMCOS and PG + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABERFORTH SMCOS and PG +
The main advantage of trading using opposite ABERFORTH SMCOS and PG + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABERFORTH SMCOS position performs unexpectedly, PG + 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 PG + will offset losses from the drop in PG +'s long position.| ABERFORTH SMCOS vs. Apple Inc | ABERFORTH SMCOS vs. Apple Inc | ABERFORTH SMCOS vs. Apple Inc | ABERFORTH SMCOS vs. Apple Inc |
| PG + vs. DATANG INTL POW | PG + vs. Hyrican Informationssysteme Aktiengesellschaft | PG + vs. TERADATA | PG + vs. X Fab Silicon |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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