Correlation Between Bowman Consulting and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both Bowman Consulting and Aenza SAA 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 Bowman Consulting and Aenza SAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bowman Consulting Group and Aenza SAA, you can compare the effects of market volatilities on Bowman Consulting and Aenza SAA 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 Bowman Consulting with a short position of Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowman Consulting and Aenza SAA.
Diversification Opportunities for Bowman Consulting and Aenza SAA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bowman and Aenza is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bowman Consulting Group and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA and Bowman Consulting 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 Bowman Consulting Group are associated (or correlated) with Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of Bowman Consulting i.e., Bowman Consulting and Aenza SAA go up and down completely randomly.
Pair Corralation between Bowman Consulting and Aenza SAA
If you would invest 2,566 in Bowman Consulting Group on November 4, 2024 and sell it today you would earn a total of 24.00 from holding Bowman Consulting Group or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bowman Consulting Group vs. Aenza SAA
Performance |
| Timeline |
| Bowman Consulting |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bowman Consulting and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bowman Consulting and Aenza SAA
The main advantage of trading using opposite Bowman Consulting and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowman Consulting position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.| Bowman Consulting vs. EMCOR Group | Bowman Consulting vs. Comfort Systems USA | Bowman Consulting vs. Primoris Services | Bowman Consulting vs. Granite Construction Incorporated |
| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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