Correlation Between Baumer SA and Plano Plano
Can any of the company-specific risk be diversified away by investing in both Baumer SA and Plano Plano 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 Baumer SA and Plano Plano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baumer SA and Plano Plano Desenvolvimento, you can compare the effects of market volatilities on Baumer SA and Plano Plano 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 Baumer SA with a short position of Plano Plano. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baumer SA and Plano Plano.
Diversification Opportunities for Baumer SA and Plano Plano
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baumer and Plano is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Baumer SA and Plano Plano Desenvolvimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plano Plano Desenvol and Baumer 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 Baumer SA are associated (or correlated) with Plano Plano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plano Plano Desenvol has no effect on the direction of Baumer SA i.e., Baumer SA and Plano Plano go up and down completely randomly.
Pair Corralation between Baumer SA and Plano Plano
Assuming the 90 days trading horizon Baumer SA is expected to under-perform the Plano Plano. But the preferred stock apears to be less risky and, when comparing its historical volatility, Baumer SA is 1.89 times less risky than Plano Plano. The preferred stock trades about 0.0 of its potential returns per unit of risk. The Plano Plano Desenvolvimento is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,007 in Plano Plano Desenvolvimento on November 28, 2024 and sell it today you would earn a total of 60.00 from holding Plano Plano Desenvolvimento or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baumer SA vs. Plano Plano Desenvolvimento
Performance |
| Timeline |
| Baumer SA |
| Plano Plano Desenvol |
Baumer SA and Plano Plano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baumer SA and Plano Plano
The main advantage of trading using opposite Baumer SA and Plano Plano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baumer SA position performs unexpectedly, Plano Plano 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 Plano Plano will offset losses from the drop in Plano Plano's long position.| Baumer SA vs. Baumer SA | Baumer SA vs. Biomm SA | Baumer SA vs. Bardella SA Indstrias | Baumer SA vs. Banco Alfa de |
| Plano Plano vs. Delta Air Lines | Plano Plano vs. Molson Coors Beverage | Plano Plano vs. Cardinal Health, | Plano Plano vs. Westinghouse Air Brake |
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
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |