Correlation Between Agile Content and Acerinox
Can any of the company-specific risk be diversified away by investing in both Agile Content and Acerinox 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 Agile Content and Acerinox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agile Content SA and Acerinox, you can compare the effects of market volatilities on Agile Content and Acerinox 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 Agile Content with a short position of Acerinox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Content and Acerinox.
Diversification Opportunities for Agile Content and Acerinox
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agile and Acerinox is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Agile Content SA and Acerinox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acerinox and Agile Content 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 Agile Content SA are associated (or correlated) with Acerinox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acerinox has no effect on the direction of Agile Content i.e., Agile Content and Acerinox go up and down completely randomly.
Pair Corralation between Agile Content and Acerinox
Assuming the 90 days trading horizon Agile Content SA is expected to generate 1.26 times more return on investment than Acerinox. However, Agile Content is 1.26 times more volatile than Acerinox. It trades about 0.01 of its potential returns per unit of risk. Acerinox is currently generating about -0.03 per unit of risk. If you would invest 344.00 in Agile Content SA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Agile Content SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agile Content SA vs. Acerinox
Performance |
| Timeline |
| Agile Content SA |
| Acerinox |
Agile Content and Acerinox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agile Content and Acerinox
The main advantage of trading using opposite Agile Content and Acerinox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Content position performs unexpectedly, Acerinox 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 Acerinox will offset losses from the drop in Acerinox's long position.| Agile Content vs. Atrys Health SL | Agile Content vs. Gigas Hosting SA | Agile Content vs. Grenergy Renovables SA | Agile Content vs. Lleidanetworks Serveis Telematics |
| Acerinox vs. ACS Actividades de | Acerinox vs. ArcelorMittal SA | Acerinox vs. Mapfre | Acerinox vs. Ferrovial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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