Correlation Between Capex SA and Boldt SA

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Can any of the company-specific risk be diversified away by investing in both Capex SA and Boldt 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 Capex SA and Boldt SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capex SA and Boldt SA, you can compare the effects of market volatilities on Capex SA and Boldt 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 Capex SA with a short position of Boldt SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capex SA and Boldt SA.

Diversification Opportunities for Capex SA and Boldt SA

CapexBoldtDiversified AwayCapexBoldtDiversified Away100%
0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Capex and Boldt is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Capex SA and Boldt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boldt SA and Capex 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 Capex SA are associated (or correlated) with Boldt SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boldt SA has no effect on the direction of Capex SA i.e., Capex SA and Boldt SA go up and down completely randomly.

Pair Corralation between Capex SA and Boldt SA

Assuming the 90 days trading horizon Capex SA is expected to generate 0.75 times more return on investment than Boldt SA. However, Capex SA is 1.34 times less risky than Boldt SA. It trades about 0.13 of its potential returns per unit of risk. Boldt SA is currently generating about 0.1 per unit of risk. If you would invest  68,100  in Capex SA on November 30, 2024 and sell it today you would earn a total of  546,900  from holding Capex SA or generate 803.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Capex SA  vs.  Boldt SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -25-20-15-10-505
JavaScript chart by amCharts 3.21.15CAPX BOLT
       Timeline  
Capex SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Capex SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb6,0006,5007,0007,5008,0008,5009,0009,50010,000
Boldt SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Boldt SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb455055

Capex SA and Boldt SA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.39-4.78-3.18-1.580.01.412.854.285.72 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15CAPX BOLT
       Returns  

Pair Trading with Capex SA and Boldt SA

The main advantage of trading using opposite Capex SA and Boldt SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capex SA position performs unexpectedly, Boldt 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 Boldt SA will offset losses from the drop in Boldt SA's long position.
The idea behind Capex SA and Boldt SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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