Correlation Between Avax SA and Elton International
Can any of the company-specific risk be diversified away by investing in both Avax SA and Elton International 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 Avax SA and Elton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avax SA and Elton International Trading, you can compare the effects of market volatilities on Avax SA and Elton International 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 Avax SA with a short position of Elton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avax SA and Elton International.
Diversification Opportunities for Avax SA and Elton International
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Avax and Elton is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Avax SA and Elton International Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elton International and Avax 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 Avax SA are associated (or correlated) with Elton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elton International has no effect on the direction of Avax SA i.e., Avax SA and Elton International go up and down completely randomly.
Pair Corralation between Avax SA and Elton International
Assuming the 90 days trading horizon Avax SA is expected to generate 1.26 times more return on investment than Elton International. However, Avax SA is 1.26 times more volatile than Elton International Trading. It trades about 0.0 of its potential returns per unit of risk. Elton International Trading is currently generating about -0.03 per unit of risk. If you would invest 151.00 in Avax SA on September 3, 2024 and sell it today you would lose (7.00) from holding Avax SA or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avax SA vs. Elton International Trading
Performance |
| Timeline |
| Avax SA |
| Elton International |
Avax SA and Elton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avax SA and Elton International
The main advantage of trading using opposite Avax SA and Elton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avax SA position performs unexpectedly, Elton International 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 Elton International will offset losses from the drop in Elton International's long position.| Avax SA vs. Ellaktor SA | Avax SA vs. GEK TERNA Holdings | Avax SA vs. LAMDA Development SA | Avax SA vs. Public Power |
| Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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