Correlation Between APS Energia and Gobarto SA
Can any of the company-specific risk be diversified away by investing in both APS Energia and Gobarto 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 APS Energia and Gobarto SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APS Energia SA and Gobarto SA, you can compare the effects of market volatilities on APS Energia and Gobarto 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 APS Energia with a short position of Gobarto SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of APS Energia and Gobarto SA.
Diversification Opportunities for APS Energia and Gobarto SA
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APS and Gobarto is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding APS Energia SA and Gobarto SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gobarto SA and APS Energia 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 APS Energia SA are associated (or correlated) with Gobarto SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gobarto SA has no effect on the direction of APS Energia i.e., APS Energia and Gobarto SA go up and down completely randomly.
Pair Corralation between APS Energia and Gobarto SA
Assuming the 90 days trading horizon APS Energia is expected to generate 10.43 times less return on investment than Gobarto SA. But when comparing it to its historical volatility, APS Energia SA is 1.1 times less risky than Gobarto SA. It trades about 0.01 of its potential returns per unit of risk. Gobarto SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 765.00 in Gobarto SA on August 30, 2024 and sell it today you would earn a total of 2,395 from holding Gobarto SA or generate 313.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APS Energia SA vs. Gobarto SA
Performance |
| Timeline |
| APS Energia SA |
| Gobarto SA |
APS Energia and Gobarto SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APS Energia and Gobarto SA
The main advantage of trading using opposite APS Energia and Gobarto SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APS Energia position performs unexpectedly, Gobarto 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 Gobarto SA will offset losses from the drop in Gobarto SA's long position.| APS Energia vs. Asseco Business Solutions | APS Energia vs. Detalion Games SA | APS Energia vs. Asseco South Eastern | APS Energia vs. Vercom SA |
| Gobarto SA vs. Carlson Investments SA | Gobarto SA vs. PZ Cormay SA | Gobarto SA vs. Detalion Games SA | Gobarto SA vs. Baked Games 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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