Correlation Between AUTO TRADER and CIG PANNONIA
Can any of the company-specific risk be diversified away by investing in both AUTO TRADER and CIG PANNONIA 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 AUTO TRADER and CIG PANNONIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUTO TRADER ADR and CIG PANNONIA LIFE, you can compare the effects of market volatilities on AUTO TRADER and CIG PANNONIA 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 AUTO TRADER with a short position of CIG PANNONIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTO TRADER and CIG PANNONIA.
Diversification Opportunities for AUTO TRADER and CIG PANNONIA
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AUTO and CIG is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AUTO TRADER ADR and CIG PANNONIA LIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG PANNONIA LIFE and AUTO TRADER 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 AUTO TRADER ADR are associated (or correlated) with CIG PANNONIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG PANNONIA LIFE has no effect on the direction of AUTO TRADER i.e., AUTO TRADER and CIG PANNONIA go up and down completely randomly.
Pair Corralation between AUTO TRADER and CIG PANNONIA
Assuming the 90 days trading horizon AUTO TRADER ADR is expected to under-perform the CIG PANNONIA. In addition to that, AUTO TRADER is 1.11 times more volatile than CIG PANNONIA LIFE. It trades about -0.03 of its total potential returns per unit of risk. CIG PANNONIA LIFE is currently generating about 0.41 per unit of volatility. If you would invest 85.00 in CIG PANNONIA LIFE on November 3, 2024 and sell it today you would earn a total of 12.00 from holding CIG PANNONIA LIFE or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUTO TRADER ADR vs. CIG PANNONIA LIFE
Performance |
| Timeline |
| AUTO TRADER ADR |
| CIG PANNONIA LIFE |
AUTO TRADER and CIG PANNONIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUTO TRADER and CIG PANNONIA
The main advantage of trading using opposite AUTO TRADER and CIG PANNONIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUTO TRADER position performs unexpectedly, CIG PANNONIA 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 CIG PANNONIA will offset losses from the drop in CIG PANNONIA's long position.| AUTO TRADER vs. Phibro Animal Health | AUTO TRADER vs. CLOVER HEALTH INV | AUTO TRADER vs. DISTRICT METALS | AUTO TRADER vs. RCI Hospitality Holdings |
| CIG PANNONIA vs. Aflac Incorporated | CIG PANNONIA vs. CHINA PACINGRGDR5 YC1 | CIG PANNONIA vs. Phoenix Group Holdings | CIG PANNONIA vs. SANLAM LTD RC 01 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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