Correlation Between Atresmedia Corporacin and Aperam SA
Can any of the company-specific risk be diversified away by investing in both Atresmedia Corporacin and Aperam SA 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 Atresmedia Corporacin and Aperam SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia Corporacin de and Aperam SA, you can compare the effects of market volatilities on Atresmedia Corporacin and Aperam SA 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 Atresmedia Corporacin with a short position of Aperam SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia Corporacin and Aperam SA.
Diversification Opportunities for Atresmedia Corporacin and Aperam SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atresmedia and Aperam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia Corporacin de and Aperam SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperam SA and Atresmedia Corporacin 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 Atresmedia Corporacin de are associated (or correlated) with Aperam SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperam SA has no effect on the direction of Atresmedia Corporacin i.e., Atresmedia Corporacin and Aperam SA go up and down completely randomly.
Pair Corralation between Atresmedia Corporacin and Aperam SA
Assuming the 90 days trading horizon Atresmedia Corporacin is expected to generate 2.52 times less return on investment than Aperam SA. But when comparing it to its historical volatility, Atresmedia Corporacin de is 2.57 times less risky than Aperam SA. It trades about 0.25 of its potential returns per unit of risk. Aperam SA is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,453 in Aperam SA on September 1, 2024 and sell it today you would earn a total of 271.00 from holding Aperam SA or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia Corporacin de vs. Aperam SA
Performance |
| Timeline |
| Atresmedia Corporacin |
| Aperam SA |
Atresmedia Corporacin and Aperam SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia Corporacin and Aperam SA
The main advantage of trading using opposite Atresmedia Corporacin and Aperam SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia Corporacin position performs unexpectedly, Aperam SA 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 Aperam SA will offset losses from the drop in Aperam SA's long position.| Atresmedia Corporacin vs. ACS Actividades de | Atresmedia Corporacin vs. Ferrovial | Atresmedia Corporacin vs. Melia Hotels | Atresmedia Corporacin vs. Lyxor UCITS Ibex35 |
| Aperam SA vs. Ebro Foods | Aperam SA vs. Atrys Health SL | Aperam SA vs. Atresmedia Corporacin de | Aperam SA vs. Hispanotels Inversiones SOCIMI |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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