Correlation Between ALEFARM BREWING and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both ALEFARM BREWING and WAGNERS HOLDING 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 ALEFARM BREWING and WAGNERS HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALEFARM BREWING DK 05 and WAGNERS HOLDING LTD, you can compare the effects of market volatilities on ALEFARM BREWING and WAGNERS HOLDING 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 ALEFARM BREWING with a short position of WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALEFARM BREWING and WAGNERS HOLDING.
Diversification Opportunities for ALEFARM BREWING and WAGNERS HOLDING
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALEFARM and WAGNERS is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ALEFARM BREWING DK 05 and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD and ALEFARM BREWING 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 ALEFARM BREWING DK 05 are associated (or correlated) with WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of ALEFARM BREWING i.e., ALEFARM BREWING and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between ALEFARM BREWING and WAGNERS HOLDING
Assuming the 90 days horizon ALEFARM BREWING DK 05 is expected to under-perform the WAGNERS HOLDING. In addition to that, ALEFARM BREWING is 1.2 times more volatile than WAGNERS HOLDING LTD. It trades about -0.23 of its total potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.0 per unit of volatility. If you would invest 83.00 in WAGNERS HOLDING LTD on September 27, 2024 and sell it today you would lose (1.00) from holding WAGNERS HOLDING LTD or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALEFARM BREWING DK 05 vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| ALEFARM BREWING DK |
| WAGNERS HOLDING LTD |
ALEFARM BREWING and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALEFARM BREWING and WAGNERS HOLDING
The main advantage of trading using opposite ALEFARM BREWING and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALEFARM BREWING position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| ALEFARM BREWING vs. Fomento Econmico Mexicano | ALEFARM BREWING vs. Anheuser Busch InBev SANV | ALEFARM BREWING vs. BUDWEISER BREWUNSPADR4 | ALEFARM BREWING vs. China Resources Beer |
| WAGNERS HOLDING vs. Tencent Music Entertainment | WAGNERS HOLDING vs. GAMING FAC SA | WAGNERS HOLDING vs. Seven West Media | WAGNERS HOLDING vs. Live Nation Entertainment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |