Correlation Between Atelierele CFR and Turism Hotelur
Can any of the company-specific risk be diversified away by investing in both Atelierele CFR and Turism Hotelur 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 Atelierele CFR and Turism Hotelur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atelierele CFR Grivita and Turism Hotelur, you can compare the effects of market volatilities on Atelierele CFR and Turism Hotelur 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 Atelierele CFR with a short position of Turism Hotelur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atelierele CFR and Turism Hotelur.
Diversification Opportunities for Atelierele CFR and Turism Hotelur
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atelierele and Turism is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Atelierele CFR Grivita and Turism Hotelur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turism Hotelur and Atelierele CFR 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 Atelierele CFR Grivita are associated (or correlated) with Turism Hotelur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turism Hotelur has no effect on the direction of Atelierele CFR i.e., Atelierele CFR and Turism Hotelur go up and down completely randomly.
Pair Corralation between Atelierele CFR and Turism Hotelur
Assuming the 90 days trading horizon Atelierele CFR Grivita is expected to under-perform the Turism Hotelur. But the stock apears to be less risky and, when comparing its historical volatility, Atelierele CFR Grivita is 1.29 times less risky than Turism Hotelur. The stock trades about -0.01 of its potential returns per unit of risk. The Turism Hotelur is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Turism Hotelur on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Turism Hotelur or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atelierele CFR Grivita vs. Turism Hotelur
Performance |
| Timeline |
| Atelierele CFR Grivita |
| Turism Hotelur |
Atelierele CFR and Turism Hotelur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atelierele CFR and Turism Hotelur
The main advantage of trading using opposite Atelierele CFR and Turism Hotelur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atelierele CFR position performs unexpectedly, Turism Hotelur 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 Turism Hotelur will offset losses from the drop in Turism Hotelur's long position.| Atelierele CFR vs. Evergent Investments SA | Atelierele CFR vs. Digi Communications NV | Atelierele CFR vs. GRUPUL INDUSTRIAL ELECTROCONTACT | Atelierele CFR vs. Compania Hoteliera InterContinental |
| Turism Hotelur vs. Oil Terminal C | Turism Hotelur vs. Antibiotice Ia | Turism Hotelur vs. Aages SA | Turism Hotelur vs. Alumil Rom Industry |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |