Correlation Between Ares Management and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both Ares Management and SYSTEMAIR 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 Ares Management and SYSTEMAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ares Management Corp and SYSTEMAIR AB, you can compare the effects of market volatilities on Ares Management and SYSTEMAIR 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 Ares Management with a short position of SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ares Management and SYSTEMAIR.
Diversification Opportunities for Ares Management and SYSTEMAIR
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ares and SYSTEMAIR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ares Management Corp and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB and Ares Management 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 Ares Management Corp are associated (or correlated) with SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Ares Management i.e., Ares Management and SYSTEMAIR go up and down completely randomly.
Pair Corralation between Ares Management and SYSTEMAIR
Assuming the 90 days horizon Ares Management Corp is expected to generate 0.6 times more return on investment than SYSTEMAIR. However, Ares Management Corp is 1.66 times less risky than SYSTEMAIR. It trades about 0.11 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about 0.04 per unit of risk. If you would invest 6,495 in Ares Management Corp on November 30, 2024 and sell it today you would earn a total of 9,631 from holding Ares Management Corp or generate 148.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ares Management Corp vs. SYSTEMAIR AB
Performance |
| Timeline |
| Ares Management Corp |
| SYSTEMAIR AB |
Ares Management and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ares Management and SYSTEMAIR
The main advantage of trading using opposite Ares Management and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ares Management position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| Ares Management vs. The Hanover Insurance | Ares Management vs. United Overseas Insurance | Ares Management vs. Ping An Insurance | Ares Management vs. Goosehead Insurance |
| SYSTEMAIR vs. Western Copper and | SYSTEMAIR vs. FRACTAL GAMING GROUP | SYSTEMAIR vs. GigaMedia | SYSTEMAIR vs. GRIFFIN MINING LTD |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |