Correlation Between Aures Technologies and Exail Technologies
Can any of the company-specific risk be diversified away by investing in both Aures Technologies and Exail Technologies 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 Aures Technologies and Exail Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aures Technologies SA and Exail Technologies SA, you can compare the effects of market volatilities on Aures Technologies and Exail Technologies 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 Aures Technologies with a short position of Exail Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aures Technologies and Exail Technologies.
Diversification Opportunities for Aures Technologies and Exail Technologies
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aures and Exail is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aures Technologies SA and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies and Aures Technologies 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 Aures Technologies SA are associated (or correlated) with Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Aures Technologies i.e., Aures Technologies and Exail Technologies go up and down completely randomly.
Pair Corralation between Aures Technologies and Exail Technologies
Assuming the 90 days trading horizon Aures Technologies is expected to generate 18.02 times less return on investment than Exail Technologies. But when comparing it to its historical volatility, Aures Technologies SA is 11.69 times less risky than Exail Technologies. It trades about 0.12 of its potential returns per unit of risk. Exail Technologies SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,840 in Exail Technologies SA on November 4, 2024 and sell it today you would earn a total of 110.00 from holding Exail Technologies SA or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aures Technologies SA vs. Exail Technologies SA
Performance |
| Timeline |
| Aures Technologies |
| Exail Technologies |
Aures Technologies and Exail Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aures Technologies and Exail Technologies
The main advantage of trading using opposite Aures Technologies and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aures Technologies position performs unexpectedly, Exail Technologies 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.| Aures Technologies vs. Marie Brizard Wine | Aures Technologies vs. Entech SE SAS | Aures Technologies vs. Technip Energies BV | Aures Technologies vs. Reworld Media |
| Exail Technologies vs. Veolia Environnement VE | Exail Technologies vs. Hotel Majestic Cannes | Exail Technologies vs. Hoteles Bestprice SA | Exail Technologies vs. Gaztransport Technigaz SAS |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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