Correlation Between Aecom Technology and VINCI SA
Can any of the company-specific risk be diversified away by investing in both Aecom Technology and VINCI 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 Aecom Technology and VINCI SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aecom Technology and VINCI SA, you can compare the effects of market volatilities on Aecom Technology and VINCI 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 Aecom Technology with a short position of VINCI SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aecom Technology and VINCI SA.
Diversification Opportunities for Aecom Technology and VINCI SA
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aecom and VINCI is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aecom Technology and VINCI SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VINCI SA and Aecom Technology 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 Aecom Technology are associated (or correlated) with VINCI SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VINCI SA has no effect on the direction of Aecom Technology i.e., Aecom Technology and VINCI SA go up and down completely randomly.
Pair Corralation between Aecom Technology and VINCI SA
Considering the 90-day investment horizon Aecom Technology is expected to generate 0.72 times more return on investment than VINCI SA. However, Aecom Technology is 1.39 times less risky than VINCI SA. It trades about 0.16 of its potential returns per unit of risk. VINCI SA is currently generating about -0.04 per unit of risk. If you would invest 8,546 in Aecom Technology on August 28, 2024 and sell it today you would earn a total of 3,143 from holding Aecom Technology or generate 36.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Aecom Technology vs. VINCI SA
Performance |
| Timeline |
| Aecom Technology |
| VINCI SA |
Aecom Technology and VINCI SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aecom Technology and VINCI SA
The main advantage of trading using opposite Aecom Technology and VINCI SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aecom Technology position performs unexpectedly, VINCI 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 VINCI SA will offset losses from the drop in VINCI SA's long position.| Aecom Technology vs. Innovate Corp | Aecom Technology vs. Energy Services | Aecom Technology vs. Topbuild Corp |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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