Correlation Between Allegroeu and Stalexport Autostrady
Can any of the company-specific risk be diversified away by investing in both Allegroeu and Stalexport Autostrady 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 Allegroeu and Stalexport Autostrady into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegroeu SA and Stalexport Autostrady SA, you can compare the effects of market volatilities on Allegroeu and Stalexport Autostrady 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 Allegroeu with a short position of Stalexport Autostrady. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegroeu and Stalexport Autostrady.
Diversification Opportunities for Allegroeu and Stalexport Autostrady
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allegroeu and Stalexport is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allegroeu SA and Stalexport Autostrady SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stalexport Autostrady and Allegroeu 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 Allegroeu SA are associated (or correlated) with Stalexport Autostrady. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stalexport Autostrady has no effect on the direction of Allegroeu i.e., Allegroeu and Stalexport Autostrady go up and down completely randomly.
Pair Corralation between Allegroeu and Stalexport Autostrady
Assuming the 90 days trading horizon Allegroeu SA is expected to under-perform the Stalexport Autostrady. In addition to that, Allegroeu is 2.43 times more volatile than Stalexport Autostrady SA. It trades about -0.3 of its total potential returns per unit of risk. Stalexport Autostrady SA is currently generating about 0.28 per unit of volatility. If you would invest 268.00 in Stalexport Autostrady SA on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Stalexport Autostrady SA or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Allegroeu SA vs. Stalexport Autostrady SA
Performance |
| Timeline |
| Allegroeu SA |
| Stalexport Autostrady |
Allegroeu and Stalexport Autostrady Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegroeu and Stalexport Autostrady
The main advantage of trading using opposite Allegroeu and Stalexport Autostrady positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegroeu position performs unexpectedly, Stalexport Autostrady 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 Stalexport Autostrady will offset losses from the drop in Stalexport Autostrady's long position.| Allegroeu vs. Pyramid Games SA | Allegroeu vs. Detalion Games SA | Allegroeu vs. UniCredit SpA | Allegroeu vs. Carlson Investments SA |
| Stalexport Autostrady vs. Banco Santander SA | Stalexport Autostrady vs. UniCredit SpA | Stalexport Autostrady vs. CEZ as | Stalexport Autostrady vs. Polski Koncern Naftowy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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