Correlation Between Airesis SA and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Airesis SA and Cembra Money 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 Airesis SA and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airesis SA and Cembra Money Bank, you can compare the effects of market volatilities on Airesis SA and Cembra Money 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 Airesis SA with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airesis SA and Cembra Money.
Diversification Opportunities for Airesis SA and Cembra Money
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Airesis and Cembra is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Airesis SA and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank and Airesis SA 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 Airesis SA are associated (or correlated) with Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Airesis SA i.e., Airesis SA and Cembra Money go up and down completely randomly.
Pair Corralation between Airesis SA and Cembra Money
Assuming the 90 days trading horizon Airesis SA is expected to generate 9.98 times more return on investment than Cembra Money. However, Airesis SA is 9.98 times more volatile than Cembra Money Bank. It trades about 0.01 of its potential returns per unit of risk. Cembra Money Bank is currently generating about 0.03 per unit of risk. If you would invest 53.00 in Airesis SA on September 3, 2024 and sell it today you would lose (46.50) from holding Airesis SA or give up 87.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.3% |
| Values | Daily Returns |
Airesis SA vs. Cembra Money Bank
Performance |
| Timeline |
| Airesis SA |
| Cembra Money Bank |
Airesis SA and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airesis SA and Cembra Money
The main advantage of trading using opposite Airesis SA and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airesis SA position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Airesis SA vs. Ascom Holding AG | Airesis SA vs. Bellevue Group AG | Airesis SA vs. Cicor Technologies | Airesis SA vs. Adval Tech Holding |
| Cembra Money vs. Helvetia Holding AG | Cembra Money vs. Swiss Life Holding | Cembra Money vs. Baloise Holding AG | Cembra Money vs. Logitech International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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