Correlation Between Salomon A and Spuntech
Can any of the company-specific risk be diversified away by investing in both Salomon A and Spuntech 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 Salomon A and Spuntech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salomon A Angel and Spuntech, you can compare the effects of market volatilities on Salomon A and Spuntech 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 Salomon A with a short position of Spuntech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salomon A and Spuntech.
Diversification Opportunities for Salomon A and Spuntech
Weak diversification
The 3 months correlation between Salomon and Spuntech is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Salomon A Angel and Spuntech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spuntech and Salomon A 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 Salomon A Angel are associated (or correlated) with Spuntech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spuntech has no effect on the direction of Salomon A i.e., Salomon A and Spuntech go up and down completely randomly.
Pair Corralation between Salomon A and Spuntech
Assuming the 90 days trading horizon Salomon A is expected to generate 4.81 times less return on investment than Spuntech. In addition to that, Salomon A is 1.06 times more volatile than Spuntech. It trades about 0.01 of its total potential returns per unit of risk. Spuntech is currently generating about 0.06 per unit of volatility. If you would invest 26,605 in Spuntech on August 31, 2024 and sell it today you would earn a total of 13,525 from holding Spuntech or generate 50.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salomon A Angel vs. Spuntech
Performance |
| Timeline |
| Salomon A Angel |
| Spuntech |
Salomon A and Spuntech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salomon A and Spuntech
The main advantage of trading using opposite Salomon A and Spuntech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salomon A position performs unexpectedly, Spuntech 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 Spuntech will offset losses from the drop in Spuntech's long position.| Salomon A vs. Zanlakol | Salomon A vs. Gan Shmuel | Salomon A vs. Carmit | Salomon A vs. Sano Brunos Enterprises |
| Spuntech vs. Neto ME Holdings | Spuntech vs. Kerur Holdings | Spuntech vs. Salomon A Angel | Spuntech vs. Sano Brunos Enterprises |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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