Correlation Between Babcock International and ACS Actividades
Can any of the company-specific risk be diversified away by investing in both Babcock International and ACS Actividades 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 Babcock International and ACS Actividades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Babcock International Group and ACS Actividades de, you can compare the effects of market volatilities on Babcock International and ACS Actividades 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 Babcock International with a short position of ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babcock International and ACS Actividades.
Diversification Opportunities for Babcock International and ACS Actividades
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Babcock and ACS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Babcock International Group and ACS Actividades de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades de and Babcock International 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 Babcock International Group are associated (or correlated) with ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades de has no effect on the direction of Babcock International i.e., Babcock International and ACS Actividades go up and down completely randomly.
Pair Corralation between Babcock International and ACS Actividades
Assuming the 90 days horizon Babcock International Group is expected to generate 25.25 times more return on investment than ACS Actividades. However, Babcock International is 25.25 times more volatile than ACS Actividades de. It trades about 0.13 of its potential returns per unit of risk. ACS Actividades de is currently generating about 0.21 per unit of risk. If you would invest 595.00 in Babcock International Group on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Babcock International Group or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Babcock International Group vs. ACS Actividades de
Performance |
| Timeline |
| Babcock International |
| ACS Actividades de |
Babcock International and ACS Actividades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Babcock International and ACS Actividades
The main advantage of trading using opposite Babcock International and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babcock International position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.| Babcock International vs. Orion Group Holdings | Babcock International vs. Agrify Corp | Babcock International vs. Matrix Service Co | Babcock International vs. MYR Group |
| ACS Actividades vs. Orion Group Holdings | ACS Actividades vs. Agrify Corp | ACS Actividades vs. Matrix Service Co | ACS Actividades vs. MYR Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |