Correlation Between ACS Actividades and Merlin Properties
Can any of the company-specific risk be diversified away by investing in both ACS Actividades and Merlin Properties 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 ACS Actividades and Merlin Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACS Actividades de and Merlin Properties SOCIMI, you can compare the effects of market volatilities on ACS Actividades and Merlin Properties 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 ACS Actividades with a short position of Merlin Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and Merlin Properties.
Diversification Opportunities for ACS Actividades and Merlin Properties
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ACS and Merlin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades de and Merlin Properties SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merlin Properties SOCIMI and ACS Actividades 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 ACS Actividades de are associated (or correlated) with Merlin Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merlin Properties SOCIMI has no effect on the direction of ACS Actividades i.e., ACS Actividades and Merlin Properties go up and down completely randomly.
Pair Corralation between ACS Actividades and Merlin Properties
Assuming the 90 days trading horizon ACS Actividades is expected to generate 1.21 times less return on investment than Merlin Properties. But when comparing it to its historical volatility, ACS Actividades de is 1.34 times less risky than Merlin Properties. It trades about 0.09 of its potential returns per unit of risk. Merlin Properties SOCIMI is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 739.00 in Merlin Properties SOCIMI on August 25, 2024 and sell it today you would earn a total of 294.00 from holding Merlin Properties SOCIMI or generate 39.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACS Actividades de vs. Merlin Properties SOCIMI
Performance |
| Timeline |
| ACS Actividades de |
| Merlin Properties SOCIMI |
ACS Actividades and Merlin Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACS Actividades and Merlin Properties
The main advantage of trading using opposite ACS Actividades and Merlin Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACS Actividades position performs unexpectedly, Merlin Properties 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 Merlin Properties will offset losses from the drop in Merlin Properties' long position.| ACS Actividades vs. Mapfre | ACS Actividades vs. Enags SA | ACS Actividades vs. Ferrovial | ACS Actividades vs. Endesa SA |
| Merlin Properties vs. Neinor Homes SLU | Merlin Properties vs. Metrovacesa SA | Merlin Properties vs. Atresmedia Corporacin de |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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