Correlation Between Audax Renovables and Grenergy Renovables
Can any of the company-specific risk be diversified away by investing in both Audax Renovables and Grenergy Renovables 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 Audax Renovables and Grenergy Renovables into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Audax Renovables SA and Grenergy Renovables SA, you can compare the effects of market volatilities on Audax Renovables and Grenergy Renovables 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 Audax Renovables with a short position of Grenergy Renovables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Audax Renovables and Grenergy Renovables.
Diversification Opportunities for Audax Renovables and Grenergy Renovables
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Audax and Grenergy is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Audax Renovables SA and Grenergy Renovables SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grenergy Renovables and Audax Renovables 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 Audax Renovables SA are associated (or correlated) with Grenergy Renovables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grenergy Renovables has no effect on the direction of Audax Renovables i.e., Audax Renovables and Grenergy Renovables go up and down completely randomly.
Pair Corralation between Audax Renovables and Grenergy Renovables
Assuming the 90 days trading horizon Audax Renovables SA is expected to generate 0.62 times more return on investment than Grenergy Renovables. However, Audax Renovables SA is 1.61 times less risky than Grenergy Renovables. It trades about -0.23 of its potential returns per unit of risk. Grenergy Renovables SA is currently generating about -0.29 per unit of risk. If you would invest 178.00 in Audax Renovables SA on August 25, 2024 and sell it today you would lose (14.00) from holding Audax Renovables SA or give up 7.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Audax Renovables SA vs. Grenergy Renovables SA
Performance |
| Timeline |
| Audax Renovables |
| Grenergy Renovables |
Audax Renovables and Grenergy Renovables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Audax Renovables and Grenergy Renovables
The main advantage of trading using opposite Audax Renovables and Grenergy Renovables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Audax Renovables position performs unexpectedly, Grenergy Renovables 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 Grenergy Renovables will offset losses from the drop in Grenergy Renovables' long position.| Audax Renovables vs. Solaria Energa y | Audax Renovables vs. Grenergy Renovables SA | Audax Renovables vs. Oryzon Genomics SA | Audax Renovables vs. Pharma Mar SA |
| Grenergy Renovables vs. Solaria Energa y | Grenergy Renovables vs. Audax Renovables SA | Grenergy Renovables vs. Soltec Power Holdings | Grenergy Renovables vs. Pharma Mar SA |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |