Correlation Between Apator SA and Inter Cars
Can any of the company-specific risk be diversified away by investing in both Apator SA and Inter Cars 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 Apator SA and Inter Cars into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apator SA and Inter Cars SA, you can compare the effects of market volatilities on Apator SA and Inter Cars 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 Apator SA with a short position of Inter Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apator SA and Inter Cars.
Diversification Opportunities for Apator SA and Inter Cars
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apator and Inter is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Apator SA and Inter Cars SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Cars SA and Apator 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 Apator SA are associated (or correlated) with Inter Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Cars SA has no effect on the direction of Apator SA i.e., Apator SA and Inter Cars go up and down completely randomly.
Pair Corralation between Apator SA and Inter Cars
Assuming the 90 days trading horizon Apator SA is expected to generate 2.47 times less return on investment than Inter Cars. But when comparing it to its historical volatility, Apator SA is 1.02 times less risky than Inter Cars. It trades about 0.08 of its potential returns per unit of risk. Inter Cars SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 53,600 in Inter Cars SA on November 4, 2024 and sell it today you would earn a total of 4,700 from holding Inter Cars SA or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apator SA vs. Inter Cars SA
Performance |
| Timeline |
| Apator SA |
| Inter Cars SA |
Apator SA and Inter Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apator SA and Inter Cars
The main advantage of trading using opposite Apator SA and Inter Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apator SA position performs unexpectedly, Inter Cars 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 Inter Cars will offset losses from the drop in Inter Cars' long position.| Apator SA vs. Movie Games SA | Apator SA vs. Creativeforge Games SA | Apator SA vs. All In Games | Apator SA vs. Mercator Medical SA |
| Inter Cars vs. Banco Santander SA | Inter Cars vs. UniCredit SpA | Inter Cars vs. CEZ as | Inter Cars vs. Polski Koncern Naftowy |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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