Correlation Between Benefit Systems and Echo Investment
Can any of the company-specific risk be diversified away by investing in both Benefit Systems and Echo Investment 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 Benefit Systems and Echo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benefit Systems SA and Echo Investment SA, you can compare the effects of market volatilities on Benefit Systems and Echo Investment 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 Benefit Systems with a short position of Echo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benefit Systems and Echo Investment.
Diversification Opportunities for Benefit Systems and Echo Investment
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Benefit and Echo is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Benefit Systems SA and Echo Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Echo Investment SA and Benefit Systems 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 Benefit Systems SA are associated (or correlated) with Echo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Echo Investment SA has no effect on the direction of Benefit Systems i.e., Benefit Systems and Echo Investment go up and down completely randomly.
Pair Corralation between Benefit Systems and Echo Investment
Assuming the 90 days trading horizon Benefit Systems SA is expected to generate 1.0 times more return on investment than Echo Investment. However, Benefit Systems is 1.0 times more volatile than Echo Investment SA. It trades about 0.0 of its potential returns per unit of risk. Echo Investment SA is currently generating about -0.01 per unit of risk. If you would invest 278,961 in Benefit Systems SA on September 5, 2024 and sell it today you would lose (5,961) from holding Benefit Systems SA or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Benefit Systems SA vs. Echo Investment SA
Performance |
| Timeline |
| Benefit Systems SA |
| Echo Investment SA |
Benefit Systems and Echo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benefit Systems and Echo Investment
The main advantage of trading using opposite Benefit Systems and Echo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benefit Systems position performs unexpectedly, Echo Investment 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 Echo Investment will offset losses from the drop in Echo Investment's long position.| Benefit Systems vs. Echo Investment SA | Benefit Systems vs. mBank SA | Benefit Systems vs. Noble Financials SA | Benefit Systems vs. Skyline Investment SA |
| Echo Investment vs. Asseco Business Solutions | Echo Investment vs. Kogeneracja SA | Echo Investment vs. Asseco South Eastern | Echo Investment vs. Movie Games 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |