Correlation Between Argen X and Wereldhav
Can any of the company-specific risk be diversified away by investing in both Argen X and Wereldhav 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 Argen X and Wereldhav into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argen X and Wereldhav B Sicafi, you can compare the effects of market volatilities on Argen X and Wereldhav 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 Wereldhav. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argen X and Wereldhav.
Diversification Opportunities for Argen X and Wereldhav
Pay attention - limited upside
The 3 months correlation between Argen and Wereldhav is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Argen X and Wereldhav B Sicafi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wereldhav B Sicafi 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 Wereldhav. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wereldhav B Sicafi has no effect on the direction of Argen X i.e., Argen X and Wereldhav go up and down completely randomly.
Pair Corralation between Argen X and Wereldhav
Assuming the 90 days trading horizon Argen X is expected to generate 1.92 times more return on investment than Wereldhav. However, Argen X is 1.92 times more volatile than Wereldhav B Sicafi. It trades about 0.05 of its potential returns per unit of risk. Wereldhav B Sicafi is currently generating about 0.01 per unit of risk. If you would invest 35,020 in Argen X on September 1, 2024 and sell it today you would earn a total of 23,620 from holding Argen X or generate 67.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Argen X vs. Wereldhav B Sicafi
Performance |
| Timeline |
| Argen X |
| Wereldhav B Sicafi |
Argen X and Wereldhav Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argen X and Wereldhav
The main advantage of trading using opposite Argen X and Wereldhav positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argen X position performs unexpectedly, Wereldhav 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 Wereldhav will offset losses from the drop in Wereldhav's long position.| Argen X vs. Groep Brussel Lambert | Argen X vs. Ackermans Van Haaren | Argen X vs. Tessenderlo | Argen X vs. Sofina Socit Anonyme |
| Wereldhav vs. Cofinimmo SA | Wereldhav vs. Retail Estates | Wereldhav vs. Warehouses de Pauw | Wereldhav vs. Montea CVA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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