Correlation Between Prosegur Cash and Endurance Motive
Can any of the company-specific risk be diversified away by investing in both Prosegur Cash and Endurance Motive 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 Prosegur Cash and Endurance Motive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosegur Cash SA and Endurance Motive SA, you can compare the effects of market volatilities on Prosegur Cash and Endurance Motive 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 Prosegur Cash with a short position of Endurance Motive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosegur Cash and Endurance Motive.
Diversification Opportunities for Prosegur Cash and Endurance Motive
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Prosegur and Endurance is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Prosegur Cash SA and Endurance Motive SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Motive and Prosegur Cash 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 Prosegur Cash SA are associated (or correlated) with Endurance Motive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Motive has no effect on the direction of Prosegur Cash i.e., Prosegur Cash and Endurance Motive go up and down completely randomly.
Pair Corralation between Prosegur Cash and Endurance Motive
Assuming the 90 days trading horizon Prosegur Cash SA is expected to under-perform the Endurance Motive. In addition to that, Prosegur Cash is 1.18 times more volatile than Endurance Motive SA. It trades about -0.15 of its total potential returns per unit of risk. Endurance Motive SA is currently generating about -0.13 per unit of volatility. If you would invest 120.00 in Endurance Motive SA on August 30, 2024 and sell it today you would lose (5.00) from holding Endurance Motive SA or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Prosegur Cash SA vs. Endurance Motive SA
Performance |
| Timeline |
| Prosegur Cash SA |
| Endurance Motive |
Prosegur Cash and Endurance Motive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosegur Cash and Endurance Motive
The main advantage of trading using opposite Prosegur Cash and Endurance Motive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosegur Cash position performs unexpectedly, Endurance Motive 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 Endurance Motive will offset losses from the drop in Endurance Motive's long position.| Prosegur Cash vs. Arrienda Rental Properties | Prosegur Cash vs. Elaia Investment Spain | Prosegur Cash vs. Bankinter | Prosegur Cash vs. Melia Hotels |
| Endurance Motive vs. Tier1 Technology SA | Endurance Motive vs. International Consolidated Airlines | Endurance Motive vs. Plasticos Compuestos SA | Endurance Motive vs. Hispanotels Inversiones SOCIMI |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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