Correlation Between Berkeley Energia and Amper SA
Can any of the company-specific risk be diversified away by investing in both Berkeley Energia 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 Berkeley Energia and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkeley Energia Limited and Amper SA, you can compare the effects of market volatilities on Berkeley Energia 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 Berkeley Energia with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkeley Energia and Amper SA.
Diversification Opportunities for Berkeley Energia and Amper SA
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Berkeley and Amper is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Berkeley Energia Limited and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Berkeley Energia 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 Berkeley Energia Limited 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 Berkeley Energia i.e., Berkeley Energia and Amper SA go up and down completely randomly.
Pair Corralation between Berkeley Energia and Amper SA
Assuming the 90 days trading horizon Berkeley Energia Limited is expected to generate 1.13 times more return on investment than Amper SA. However, Berkeley Energia is 1.13 times more volatile than Amper SA. It trades about 0.02 of its potential returns per unit of risk. Amper SA is currently generating about 0.01 per unit of risk. If you would invest 23.00 in Berkeley Energia Limited on August 31, 2024 and sell it today you would lose (2.00) from holding Berkeley Energia Limited or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Berkeley Energia Limited vs. Amper SA
Performance |
| Timeline |
| Berkeley Energia |
| Amper SA |
Berkeley Energia and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkeley Energia and Amper SA
The main advantage of trading using opposite Berkeley Energia and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkeley Energia 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.| Berkeley Energia vs. Energy Solar Tech | Berkeley Energia vs. Tier1 Technology SA | Berkeley Energia vs. Neinor Homes SLU | Berkeley Energia vs. Atrys Health SL |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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