Correlation Between Boldt SA and Garovaglio
Can any of the company-specific risk be diversified away by investing in both Boldt SA and Garovaglio 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 Boldt SA and Garovaglio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boldt SA and Garovaglio y Zorraquin, you can compare the effects of market volatilities on Boldt SA and Garovaglio 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 Boldt SA with a short position of Garovaglio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boldt SA and Garovaglio.
Diversification Opportunities for Boldt SA and Garovaglio
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boldt and Garovaglio is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Boldt SA and Garovaglio y Zorraquin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garovaglio y Zorraquin and Boldt SA 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 Boldt SA are associated (or correlated) with Garovaglio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garovaglio y Zorraquin has no effect on the direction of Boldt SA i.e., Boldt SA and Garovaglio go up and down completely randomly.
Pair Corralation between Boldt SA and Garovaglio
Assuming the 90 days trading horizon Boldt SA is expected to generate 1.35 times more return on investment than Garovaglio. However, Boldt SA is 1.35 times more volatile than Garovaglio y Zorraquin. It trades about 0.1 of its potential returns per unit of risk. Garovaglio y Zorraquin is currently generating about 0.11 per unit of risk. If you would invest 677.00 in Boldt SA on November 30, 2024 and sell it today you would earn a total of 3,503 from holding Boldt SA or generate 517.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Boldt SA vs. Garovaglio y Zorraquin
Performance |
Timeline |
Boldt SA |
Garovaglio y Zorraquin |
Risk-Adjusted Performance
Modest
Weak | Strong |
Boldt SA and Garovaglio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boldt SA and Garovaglio
The main advantage of trading using opposite Boldt SA and Garovaglio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boldt SA position performs unexpectedly, Garovaglio 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 Garovaglio will offset losses from the drop in Garovaglio's long position.Boldt SA vs. Agrometal SAI | ||
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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