Correlation Between Aperam SA and Tubacex SA
Can any of the company-specific risk be diversified away by investing in both Aperam SA and Tubacex 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 Aperam SA and Tubacex SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aperam SA and Tubacex SA, you can compare the effects of market volatilities on Aperam SA and Tubacex 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 Aperam SA with a short position of Tubacex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aperam SA and Tubacex SA.
Diversification Opportunities for Aperam SA and Tubacex SA
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aperam and Tubacex is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aperam SA and Tubacex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tubacex SA 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 Tubacex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tubacex SA has no effect on the direction of Aperam SA i.e., Aperam SA and Tubacex SA go up and down completely randomly.
Pair Corralation between Aperam SA and Tubacex SA
If you would invest 333.00 in Tubacex SA on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Tubacex SA or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aperam SA vs. Tubacex SA
Performance |
| Timeline |
| Aperam SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Tubacex SA |
Aperam SA and Tubacex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aperam SA and Tubacex SA
The main advantage of trading using opposite Aperam SA and Tubacex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aperam SA position performs unexpectedly, Tubacex 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 Tubacex SA will offset losses from the drop in Tubacex SA's long position.| Aperam SA vs. Plasticos Compuestos SA | Aperam SA vs. Melia Hotels | Aperam SA vs. Naturhouse Health SA | Aperam SA vs. Techo Hogar SOCIMI, |
| Tubacex SA vs. Techo Hogar SOCIMI, | Tubacex SA vs. Bankinter | Tubacex SA vs. Parlem Telecom Companyia | Tubacex SA vs. Caixabank 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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