Correlation Between Argen X and Etex SA
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By analyzing existing cross correlation between Argen X and Etex SA, you can compare the effects of market volatilities on Argen X and Etex 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 Argen X with a short position of Etex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argen X and Etex SA.
Diversification Opportunities for Argen X and Etex SA
Excellent diversification
The 3 months correlation between Argen and Etex is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Argen X and Etex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etex SA and Argen X 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 Argen X are associated (or correlated) with Etex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etex SA has no effect on the direction of Argen X i.e., Argen X and Etex SA go up and down completely randomly.
Pair Corralation between Argen X and Etex SA
Assuming the 90 days trading horizon Argen X is expected to generate 0.89 times more return on investment than Etex SA. However, Argen X is 1.12 times less risky than Etex SA. It trades about 0.24 of its potential returns per unit of risk. Etex SA is currently generating about -0.15 per unit of risk. If you would invest 48,560 in Argen X on August 30, 2024 and sell it today you would earn a total of 9,680 from holding Argen X or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Argen X vs. Etex SA
Performance |
| Timeline |
| Argen X |
| Etex SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Argen X and Etex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argen X and Etex SA
The main advantage of trading using opposite Argen X and Etex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argen X position performs unexpectedly, Etex 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 Etex SA will offset losses from the drop in Etex SA's long position.The idea behind Argen X and Etex SA 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.| Etex SA vs. Shurgard Self Storage | Etex SA vs. Ion Beam Applications | Etex SA vs. Keyware Technologies NV | Etex SA vs. Retail Estates |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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