Correlation Between Aenza SAA and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Aenza SAA and Concrete Pumping 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 Aenza SAA and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aenza SAA and Concrete Pumping Holdings, you can compare the effects of market volatilities on Aenza SAA and Concrete Pumping 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 Aenza SAA with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aenza SAA and Concrete Pumping.
Diversification Opportunities for Aenza SAA and Concrete Pumping
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aenza and Concrete is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aenza SAA and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and Aenza SAA 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 Aenza SAA are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Aenza SAA i.e., Aenza SAA and Concrete Pumping go up and down completely randomly.
Pair Corralation between Aenza SAA and Concrete Pumping
If you would invest 602.00 in Concrete Pumping Holdings on November 4, 2024 and sell it today you would earn a total of 244.00 from holding Concrete Pumping Holdings or generate 40.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Aenza SAA vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Concrete Pumping Holdings |
Aenza SAA and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aenza SAA and Concrete Pumping
The main advantage of trading using opposite Aenza SAA and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aenza SAA position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
| Concrete Pumping vs. ACS Actividades de | Concrete Pumping vs. ACS Actividades De | Concrete Pumping vs. Badger Infrastructure Solutions | Concrete Pumping vs. MYR Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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