Correlation Between Api Group and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both Api Group and Aenza SAA 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 Aenza SAA 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 Aenza SAA, you can compare the effects of market volatilities on Api Group and Aenza SAA 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 Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Api Group and Aenza SAA.
Diversification Opportunities for Api Group and Aenza SAA
Very good diversification
The 3 months correlation between Api and Aenza is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Api Group Corp and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA 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 Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of Api Group i.e., Api Group and Aenza SAA go up and down completely randomly.
Pair Corralation between Api Group and Aenza SAA
If you would invest 3,414 in Api Group Corp on September 1, 2024 and sell it today you would earn a total of 364.00 from holding Api Group Corp or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Api Group Corp vs. Aenza SAA
Performance |
| Timeline |
| Api Group Corp |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Api Group and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Api Group and Aenza SAA
The main advantage of trading using opposite Api Group and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Api Group position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.The idea behind Api Group Corp and Aenza SAA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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