Correlation Between Arcure SA and Munic SA
Can any of the company-specific risk be diversified away by investing in both Arcure SA and Munic SA 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 Arcure SA and Munic SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcure SA and Munic SA, you can compare the effects of market volatilities on Arcure SA and Munic SA 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 Arcure SA with a short position of Munic SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcure SA and Munic SA.
Diversification Opportunities for Arcure SA and Munic SA
Very good diversification
The 3 months correlation between Arcure and Munic is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Arcure SA and Munic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munic SA and Arcure 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 Arcure SA are associated (or correlated) with Munic SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munic SA has no effect on the direction of Arcure SA i.e., Arcure SA and Munic SA go up and down completely randomly.
Pair Corralation between Arcure SA and Munic SA
Assuming the 90 days trading horizon Arcure SA is expected to generate 0.42 times more return on investment than Munic SA. However, Arcure SA is 2.41 times less risky than Munic SA. It trades about 0.2 of its potential returns per unit of risk. Munic SA is currently generating about 0.0 per unit of risk. If you would invest 514.00 in Arcure SA on September 4, 2024 and sell it today you would earn a total of 68.00 from holding Arcure SA or generate 13.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arcure SA vs. Munic SA
Performance |
| Timeline |
| Arcure SA |
| Munic SA |
Arcure SA and Munic SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcure SA and Munic SA
The main advantage of trading using opposite Arcure SA and Munic SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcure SA position performs unexpectedly, Munic SA 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 Munic SA will offset losses from the drop in Munic SA's long position.| Arcure SA vs. BIO UV Group | Arcure SA vs. Agripower France Sa | Arcure SA vs. Prodways Group SA | Arcure SA vs. Balyo 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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