Correlation Between Accion IBEX and Amper SA
Can any of the company-specific risk be diversified away by investing in both Accion IBEX and Amper SA 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 Accion IBEX and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accion IBEX 35 and Amper SA, you can compare the effects of market volatilities on Accion IBEX and Amper SA 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 Accion IBEX with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accion IBEX and Amper SA.
Diversification Opportunities for Accion IBEX and Amper SA
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accion and Amper is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Accion IBEX 35 and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Accion IBEX 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 Accion IBEX 35 are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Accion IBEX i.e., Accion IBEX and Amper SA go up and down completely randomly.
Pair Corralation between Accion IBEX and Amper SA
Assuming the 90 days trading horizon Accion IBEX 35 is expected to generate 0.55 times more return on investment than Amper SA. However, Accion IBEX 35 is 1.81 times less risky than Amper SA. It trades about -0.06 of its potential returns per unit of risk. Amper SA is currently generating about -0.06 per unit of risk. If you would invest 1,314 in Accion IBEX 35 on January 15, 2025 and sell it today you would lose (46.00) from holding Accion IBEX 35 or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Accion IBEX 35 vs. Amper SA
Performance |
| Timeline |
| Accion IBEX 35 |
| Amper SA |
Accion IBEX and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accion IBEX and Amper SA
The main advantage of trading using opposite Accion IBEX and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accion IBEX position performs unexpectedly, Amper SA 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 Amper SA will offset losses from the drop in Amper SA's long position.The idea behind Accion IBEX 35 and Amper SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amper SA vs. Ercros | Amper SA vs. Urbas Grupo Financiero | Amper SA vs. Duro Felguera | Amper SA vs. ENCE Energa y |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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