Correlation Between AdCapital and Pan American
Can any of the company-specific risk be diversified away by investing in both AdCapital and Pan American 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 AdCapital and Pan American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdCapital AG and Pan American Silver, you can compare the effects of market volatilities on AdCapital and Pan American 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 AdCapital with a short position of Pan American. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdCapital and Pan American.
Diversification Opportunities for AdCapital and Pan American
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AdCapital and Pan is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding AdCapital AG and Pan American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan American Silver and AdCapital 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 AdCapital AG are associated (or correlated) with Pan American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan American Silver has no effect on the direction of AdCapital i.e., AdCapital and Pan American go up and down completely randomly.
Pair Corralation between AdCapital and Pan American
Assuming the 90 days horizon AdCapital AG is expected to generate 1.71 times more return on investment than Pan American. However, AdCapital is 1.71 times more volatile than Pan American Silver. It trades about -0.07 of its potential returns per unit of risk. Pan American Silver is currently generating about -0.15 per unit of risk. If you would invest 165.00 in AdCapital AG on December 11, 2024 and sell it today you would lose (10.00) from holding AdCapital AG or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdCapital AG vs. Pan American Silver
Performance |
| Timeline |
| AdCapital AG |
| Pan American Silver |
AdCapital and Pan American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdCapital and Pan American
The main advantage of trading using opposite AdCapital and Pan American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdCapital position performs unexpectedly, Pan American 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 Pan American will offset losses from the drop in Pan American's long position.| AdCapital vs. Penn National Gaming | AdCapital vs. MONEYSUPERMARKET | AdCapital vs. Games Workshop Group | AdCapital vs. AUSNUTRIA DAIRY |
| Pan American vs. Cairo Communication SpA | Pan American vs. Ribbon Communications | Pan American vs. Comba Telecom Systems | Pan American vs. HK Electric Investments |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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