Correlation Between Badger Infrastructure and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both Badger Infrastructure and Aenza SAA 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 Badger Infrastructure and Aenza SAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Badger Infrastructure Solutions and Aenza SAA, you can compare the effects of market volatilities on Badger Infrastructure and Aenza SAA 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 Badger Infrastructure with a short position of Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Badger Infrastructure and Aenza SAA.
Diversification Opportunities for Badger Infrastructure and Aenza SAA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Badger and Aenza is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Badger Infrastructure Solution and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA and Badger Infrastructure 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 Badger Infrastructure Solutions are associated (or correlated) with Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of Badger Infrastructure i.e., Badger Infrastructure and Aenza SAA go up and down completely randomly.
Pair Corralation between Badger Infrastructure and Aenza SAA
If you would invest 2,514 in Badger Infrastructure Solutions on December 2, 2024 and sell it today you would earn a total of 150.00 from holding Badger Infrastructure Solutions or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Badger Infrastructure Solution vs. Aenza SAA
Performance |
| Timeline |
| Badger Infrastructure |
| Aenza SAA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Badger Infrastructure and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Badger Infrastructure and Aenza SAA
The main advantage of trading using opposite Badger Infrastructure and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Badger Infrastructure position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.| Badger Infrastructure vs. ACS Actividades De | Badger Infrastructure vs. Arcadis NV | Badger Infrastructure vs. Acciona SA | Badger Infrastructure vs. JGC Corp |
| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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