Correlation Between Aperam SA and ENCE Energa
Can any of the company-specific risk be diversified away by investing in both Aperam SA and ENCE Energa 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 Aperam SA and ENCE Energa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aperam SA and ENCE Energa y, you can compare the effects of market volatilities on Aperam SA and ENCE Energa 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 Aperam SA with a short position of ENCE Energa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aperam SA and ENCE Energa.
Diversification Opportunities for Aperam SA and ENCE Energa
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aperam and ENCE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aperam SA and ENCE Energa y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENCE Energa y and Aperam 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 Aperam SA are associated (or correlated) with ENCE Energa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENCE Energa y has no effect on the direction of Aperam SA i.e., Aperam SA and ENCE Energa go up and down completely randomly.
Pair Corralation between Aperam SA and ENCE Energa
Assuming the 90 days trading horizon Aperam SA is expected to generate 1.22 times more return on investment than ENCE Energa. However, Aperam SA is 1.22 times more volatile than ENCE Energa y. It trades about 0.04 of its potential returns per unit of risk. ENCE Energa y is currently generating about 0.05 per unit of risk. If you would invest 2,381 in Aperam SA on October 22, 2024 and sell it today you would earn a total of 197.00 from holding Aperam SA or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aperam SA vs. ENCE Energa y
Performance |
| Timeline |
| Aperam SA |
| ENCE Energa y |
Aperam SA and ENCE Energa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aperam SA and ENCE Energa
The main advantage of trading using opposite Aperam SA and ENCE Energa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aperam SA position performs unexpectedly, ENCE Energa 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 ENCE Energa will offset losses from the drop in ENCE Energa's long position.| Aperam SA vs. Vytrus Biotech SA | Aperam SA vs. All Iron Re | Aperam SA vs. Naturhouse Health SA | Aperam SA vs. Techo Hogar SOCIMI, |
| ENCE Energa vs. Acerinox | ENCE Energa vs. CIE Automotive SA | ENCE Energa vs. Mapfre | ENCE Energa vs. ArcelorMittal 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |