Correlation Between Aramis SAS and Spartoo SAS
Can any of the company-specific risk be diversified away by investing in both Aramis SAS and Spartoo SAS 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 Aramis SAS and Spartoo SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aramis SAS and Spartoo SAS, you can compare the effects of market volatilities on Aramis SAS and Spartoo SAS 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 Aramis SAS with a short position of Spartoo SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aramis SAS and Spartoo SAS.
Diversification Opportunities for Aramis SAS and Spartoo SAS
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aramis and Spartoo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aramis SAS and Spartoo SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spartoo SAS and Aramis SAS 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 Aramis SAS are associated (or correlated) with Spartoo SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spartoo SAS has no effect on the direction of Aramis SAS i.e., Aramis SAS and Spartoo SAS go up and down completely randomly.
Pair Corralation between Aramis SAS and Spartoo SAS
Assuming the 90 days trading horizon Aramis SAS is expected to generate 0.56 times more return on investment than Spartoo SAS. However, Aramis SAS is 1.78 times less risky than Spartoo SAS. It trades about 0.18 of its potential returns per unit of risk. Spartoo SAS is currently generating about -0.17 per unit of risk. If you would invest 602.00 in Aramis SAS on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Aramis SAS or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aramis SAS vs. Spartoo SAS
Performance |
| Timeline |
| Aramis SAS |
| Spartoo SAS |
Aramis SAS and Spartoo SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aramis SAS and Spartoo SAS
The main advantage of trading using opposite Aramis SAS and Spartoo SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aramis SAS position performs unexpectedly, Spartoo SAS 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 Spartoo SAS will offset losses from the drop in Spartoo SAS's long position.| Aramis SAS vs. LVMH Mot Hennessy | Aramis SAS vs. LOreal SA | Aramis SAS vs. Hermes International SCA | Aramis SAS vs. Manitou BF SA |
| Spartoo SAS vs. LVMH Mot Hennessy | Spartoo SAS vs. LOreal SA | Spartoo SAS vs. Hermes International SCA | Spartoo SAS vs. Manitou BF 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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