Correlation Between Aages SA and IM Vinaria
Can any of the company-specific risk be diversified away by investing in both Aages SA and IM Vinaria 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 Aages SA and IM Vinaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aages SA and IM Vinaria Purcari, you can compare the effects of market volatilities on Aages SA and IM Vinaria 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 Aages SA with a short position of IM Vinaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aages SA and IM Vinaria.
Diversification Opportunities for Aages SA and IM Vinaria
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aages and WINE is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aages SA and IM Vinaria Purcari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IM Vinaria Purcari and Aages SA 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 Aages SA are associated (or correlated) with IM Vinaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IM Vinaria Purcari has no effect on the direction of Aages SA i.e., Aages SA and IM Vinaria go up and down completely randomly.
Pair Corralation between Aages SA and IM Vinaria
Assuming the 90 days trading horizon Aages SA is expected to generate 1.8 times more return on investment than IM Vinaria. However, Aages SA is 1.8 times more volatile than IM Vinaria Purcari. It trades about 0.12 of its potential returns per unit of risk. IM Vinaria Purcari is currently generating about 0.04 per unit of risk. If you would invest 348.00 in Aages SA on September 15, 2024 and sell it today you would earn a total of 317.00 from holding Aages SA or generate 91.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aages SA vs. IM Vinaria Purcari
Performance |
| Timeline |
| Aages SA |
| IM Vinaria Purcari |
Aages SA and IM Vinaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aages SA and IM Vinaria
The main advantage of trading using opposite Aages SA and IM Vinaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aages SA position performs unexpectedly, IM Vinaria 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 IM Vinaria will offset losses from the drop in IM Vinaria's long position.| Aages SA vs. Turism Hotelur | Aages SA vs. Infinity Capital Investments | Aages SA vs. TRANSILVANIA INVESTMENTS ALLIANCE | Aages SA vs. IHUNT TECHNOLOGY IMPORT EXPORT |
| IM Vinaria vs. Oil Terminal C | IM Vinaria vs. Antibiotice Ia | IM Vinaria vs. Aages SA | IM Vinaria vs. Alumil Rom Industry |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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