Correlation Between Bucharest BET-NG and Atelierele CFR
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By analyzing existing cross correlation between Bucharest BET-NG and Atelierele CFR Grivita, you can compare the effects of market volatilities on Bucharest BET-NG and Atelierele CFR 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 Bucharest BET-NG with a short position of Atelierele CFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bucharest BET-NG and Atelierele CFR.
Diversification Opportunities for Bucharest BET-NG and Atelierele CFR
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bucharest and Atelierele is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bucharest BET-NG and Atelierele CFR Grivita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atelierele CFR Grivita and Bucharest BET-NG 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 Bucharest BET-NG are associated (or correlated) with Atelierele CFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atelierele CFR Grivita has no effect on the direction of Bucharest BET-NG i.e., Bucharest BET-NG and Atelierele CFR go up and down completely randomly.
Pair Corralation between Bucharest BET-NG and Atelierele CFR
Assuming the 90 days trading horizon Bucharest BET-NG is expected to generate 0.3 times more return on investment than Atelierele CFR. However, Bucharest BET-NG is 3.3 times less risky than Atelierele CFR. It trades about 0.03 of its potential returns per unit of risk. Atelierele CFR Grivita is currently generating about -0.01 per unit of risk. If you would invest 116,002 in Bucharest BET-NG on September 1, 2024 and sell it today you would earn a total of 3,272 from holding Bucharest BET-NG or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.26% |
| Values | Daily Returns |
Bucharest BET-NG vs. Atelierele CFR Grivita
Performance |
| Timeline |
Bucharest BET-NG and Atelierele CFR Volatility Contrast
Predicted Return Density |
| Returns |
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Atelierele CFR Grivita
Pair trading matchups for Atelierele CFR
Pair Trading with Bucharest BET-NG and Atelierele CFR
The main advantage of trading using opposite Bucharest BET-NG and Atelierele CFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucharest BET-NG position performs unexpectedly, Atelierele CFR 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 Atelierele CFR will offset losses from the drop in Atelierele CFR's long position.| Bucharest BET-NG vs. Digi Communications NV | Bucharest BET-NG vs. Compania Hoteliera InterContinental | Bucharest BET-NG vs. Evergent Investments SA | Bucharest BET-NG vs. Safetech Innovations SA |
| Atelierele CFR vs. TRANSILVANIA INVESTMENTS ALLIANCE | Atelierele CFR vs. Erste Group Bank | Atelierele CFR vs. Infinity Capital Investments | Atelierele CFR vs. Safetech Innovations SA |
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.
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