Correlation Between Apator SA and Noble Financials
Can any of the company-specific risk be diversified away by investing in both Apator SA and Noble Financials 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 Noble Financials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apator SA and Noble Financials SA, you can compare the effects of market volatilities on Apator SA and Noble Financials 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 Noble Financials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apator SA and Noble Financials.
Diversification Opportunities for Apator SA and Noble Financials
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apator and Noble is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Apator SA and Noble Financials SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble Financials 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 Noble Financials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble Financials has no effect on the direction of Apator SA i.e., Apator SA and Noble Financials go up and down completely randomly.
Pair Corralation between Apator SA and Noble Financials
Assuming the 90 days trading horizon Apator SA is expected to generate 0.56 times more return on investment than Noble Financials. However, Apator SA is 1.8 times less risky than Noble Financials. It trades about -0.19 of its potential returns per unit of risk. Noble Financials SA is currently generating about -0.16 per unit of risk. If you would invest 1,827 in Apator SA on September 12, 2024 and sell it today you would lose (119.00) from holding Apator SA or give up 6.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apator SA vs. Noble Financials SA
Performance |
| Timeline |
| Apator SA |
| Noble Financials |
Apator SA and Noble Financials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apator SA and Noble Financials
The main advantage of trading using opposite Apator SA and Noble Financials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apator SA position performs unexpectedly, Noble Financials 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 Noble Financials will offset losses from the drop in Noble Financials' long position.| Apator SA vs. CI Games SA | Apator SA vs. Intersport Polska SA | Apator SA vs. Live Motion Games | Apator SA vs. GreenX Metals |
| Noble Financials vs. Globe Trade Centre | Noble Financials vs. MLP Group SA | Noble Financials vs. Asseco Business Solutions | Noble Financials vs. Detalion 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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