Correlation Between AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE
Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE 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 AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE 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 AAC TECHNOLOGHLDGADR with a short position of BIALETTI INDUSTRIE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE.
Diversification Opportunities for AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AAC and BIALETTI is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIALETTI INDUSTRIE and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR are associated (or correlated) with BIALETTI INDUSTRIE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIALETTI INDUSTRIE has no effect on the direction of AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE go up and down completely randomly.
Pair Corralation between AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE
Assuming the 90 days horizon AAC TECHNOLOGHLDGADR is expected to generate 2.44 times less return on investment than BIALETTI INDUSTRIE. But when comparing it to its historical volatility, AAC TECHNOLOGHLDGADR is 2.28 times less risky than BIALETTI INDUSTRIE. It trades about 0.19 of its potential returns per unit of risk. BIALETTI INDUSTRIE is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 15.00 in BIALETTI INDUSTRIE on October 30, 2024 and sell it today you would earn a total of 8.00 from holding BIALETTI INDUSTRIE or generate 53.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC TECHNOLOGHLDGADR vs. BIALETTI INDUSTRIE
Performance |
| Timeline |
| AAC TECHNOLOGHLDGADR |
| BIALETTI INDUSTRIE |
AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE
The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and BIALETTI INDUSTRIE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR position performs unexpectedly, BIALETTI INDUSTRIE 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 BIALETTI INDUSTRIE will offset losses from the drop in BIALETTI INDUSTRIE's long position.| AAC TECHNOLOGHLDGADR vs. Zijin Mining Group | AAC TECHNOLOGHLDGADR vs. Games Workshop Group | AAC TECHNOLOGHLDGADR vs. GAMESTOP | AAC TECHNOLOGHLDGADR vs. Harmony Gold Mining |
| BIALETTI INDUSTRIE vs. Ebro Foods SA | BIALETTI INDUSTRIE vs. Canadian Utilities Limited | BIALETTI INDUSTRIE vs. United Utilities Group | BIALETTI INDUSTRIE vs. Maple Leaf Foods |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |