Correlation Between Inter Cars and E Xim
Can any of the company-specific risk be diversified away by investing in both Inter Cars and E Xim 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 Inter Cars and E Xim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Cars SA and E Xim IT, you can compare the effects of market volatilities on Inter Cars and E Xim 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 Inter Cars with a short position of E Xim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Cars and E Xim.
Diversification Opportunities for Inter Cars and E Xim
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inter and EXM is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Inter Cars SA and E Xim IT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Xim IT and Inter Cars 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 Inter Cars SA are associated (or correlated) with E Xim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Xim IT has no effect on the direction of Inter Cars i.e., Inter Cars and E Xim go up and down completely randomly.
Pair Corralation between Inter Cars and E Xim
Assuming the 90 days trading horizon Inter Cars is expected to generate 33.38 times less return on investment than E Xim. But when comparing it to its historical volatility, Inter Cars SA is 6.16 times less risky than E Xim. It trades about 0.02 of its potential returns per unit of risk. E Xim IT is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,820 in E Xim IT on August 30, 2024 and sell it today you would earn a total of 12,680 from holding E Xim IT or generate 331.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 36.44% |
| Values | Daily Returns |
Inter Cars SA vs. E Xim IT
Performance |
| Timeline |
| Inter Cars SA |
| E Xim IT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Inter Cars and E Xim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Cars and E Xim
The main advantage of trading using opposite Inter Cars and E Xim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Cars position performs unexpectedly, E Xim 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 E Xim will offset losses from the drop in E Xim's long position.| Inter Cars vs. Banco Santander SA | Inter Cars vs. UniCredit SpA | Inter Cars vs. CEZ as | Inter Cars vs. Polski Koncern Naftowy |
| E Xim vs. Varsav Game Studios | E Xim vs. Gamedust SA | E Xim vs. Ultimate Games SA | E Xim vs. Inter Cars 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 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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