Correlation Between Api Group and Acciona SA
Can any of the company-specific risk be diversified away by investing in both Api Group and Acciona 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 Api Group and Acciona SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Api Group Corp and Acciona SA, you can compare the effects of market volatilities on Api Group and Acciona 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 Api Group with a short position of Acciona SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Api Group and Acciona SA.
Diversification Opportunities for Api Group and Acciona SA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Api and Acciona is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Api Group Corp and Acciona SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acciona SA and Api Group 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 Api Group Corp are associated (or correlated) with Acciona SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acciona SA has no effect on the direction of Api Group i.e., Api Group and Acciona SA go up and down completely randomly.
Pair Corralation between Api Group and Acciona SA
Considering the 90-day investment horizon Api Group Corp is expected to generate 0.83 times more return on investment than Acciona SA. However, Api Group Corp is 1.21 times less risky than Acciona SA. It trades about 0.18 of its potential returns per unit of risk. Acciona SA is currently generating about -0.08 per unit of risk. If you would invest 3,651 in Api Group Corp on October 26, 2024 and sell it today you would earn a total of 163.00 from holding Api Group Corp or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Api Group Corp vs. Acciona SA
Performance |
| Timeline |
| Api Group Corp |
| Acciona SA |
Api Group and Acciona SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Api Group and Acciona SA
The main advantage of trading using opposite Api Group and Acciona SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Api Group position performs unexpectedly, Acciona 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 Acciona SA will offset losses from the drop in Acciona SA's long position.| Api Group vs. Topbuild Corp | Api Group vs. MYR Group | Api Group vs. Comfort Systems USA | Api Group vs. Construction Partners |
| Acciona SA vs. JGC Corp | Acciona SA vs. ACS Actividades de | Acciona SA vs. Kajima Corp ADR | Acciona SA vs. ACS Actividades De |
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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