Correlation Between Borges Agricultural and Neinor Homes
Can any of the company-specific risk be diversified away by investing in both Borges Agricultural and Neinor Homes 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 Borges Agricultural and Neinor Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borges Agricultural Industrial and Neinor Homes SLU, you can compare the effects of market volatilities on Borges Agricultural and Neinor Homes 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 Borges Agricultural with a short position of Neinor Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borges Agricultural and Neinor Homes.
Diversification Opportunities for Borges Agricultural and Neinor Homes
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Borges and Neinor is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Borges Agricultural Industrial and Neinor Homes SLU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neinor Homes SLU and Borges Agricultural 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 Borges Agricultural Industrial are associated (or correlated) with Neinor Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neinor Homes SLU has no effect on the direction of Borges Agricultural i.e., Borges Agricultural and Neinor Homes go up and down completely randomly.
Pair Corralation between Borges Agricultural and Neinor Homes
Assuming the 90 days trading horizon Borges Agricultural is expected to generate 11.87 times less return on investment than Neinor Homes. But when comparing it to its historical volatility, Borges Agricultural Industrial is 1.21 times less risky than Neinor Homes. It trades about 0.02 of its potential returns per unit of risk. Neinor Homes SLU is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 890.00 in Neinor Homes SLU on November 3, 2024 and sell it today you would earn a total of 796.00 from holding Neinor Homes SLU or generate 89.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borges Agricultural Industrial vs. Neinor Homes SLU
Performance |
| Timeline |
| Borges Agricultural |
| Neinor Homes SLU |
Borges Agricultural and Neinor Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borges Agricultural and Neinor Homes
The main advantage of trading using opposite Borges Agricultural and Neinor Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borges Agricultural position performs unexpectedly, Neinor Homes 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 Neinor Homes will offset losses from the drop in Neinor Homes' long position.| Borges Agricultural vs. Inhome Prime Properties | Borges Agricultural vs. Plasticos Compuestos SA | Borges Agricultural vs. Ebro Foods | Borges Agricultural vs. Home Capital Rentals |
| Neinor Homes vs. Aedas Homes SL | Neinor Homes vs. Metrovacesa SA | Neinor Homes vs. Merlin Properties SOCIMI | Neinor Homes vs. Lar Espana Real |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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