Correlation Between Alumil Aluminium and As Commercial
Can any of the company-specific risk be diversified away by investing in both Alumil Aluminium and As Commercial 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 Alumil Aluminium and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alumil Aluminium Industry and As Commercial Industrial, you can compare the effects of market volatilities on Alumil Aluminium and As Commercial 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 Alumil Aluminium with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alumil Aluminium and As Commercial.
Diversification Opportunities for Alumil Aluminium and As Commercial
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alumil and ASCO is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Alumil Aluminium Industry and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and Alumil Aluminium 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 Alumil Aluminium Industry are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of Alumil Aluminium i.e., Alumil Aluminium and As Commercial go up and down completely randomly.
Pair Corralation between Alumil Aluminium and As Commercial
Assuming the 90 days trading horizon Alumil Aluminium Industry is expected to generate 2.94 times more return on investment than As Commercial. However, Alumil Aluminium is 2.94 times more volatile than As Commercial Industrial. It trades about 0.33 of its potential returns per unit of risk. As Commercial Industrial is currently generating about -0.27 per unit of risk. If you would invest 320.00 in Alumil Aluminium Industry on August 27, 2024 and sell it today you would earn a total of 46.00 from holding Alumil Aluminium Industry or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alumil Aluminium Industry vs. As Commercial Industrial
Performance |
| Timeline |
| Alumil Aluminium Industry |
| As Commercial Industrial |
Alumil Aluminium and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alumil Aluminium and As Commercial
The main advantage of trading using opposite Alumil Aluminium and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alumil Aluminium position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| Alumil Aluminium vs. Hellenic Petroleum SA | Alumil Aluminium vs. Mytilineos SA | Alumil Aluminium vs. GEK TERNA Holdings | Alumil Aluminium vs. Aegean Airlines SA |
| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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