Correlation Between Compa Sibiu and Altur Slatina
Can any of the company-specific risk be diversified away by investing in both Compa Sibiu and Altur Slatina 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 Compa Sibiu and Altur Slatina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compa Sibiu and Altur Slatina, you can compare the effects of market volatilities on Compa Sibiu and Altur Slatina 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 Compa Sibiu with a short position of Altur Slatina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compa Sibiu and Altur Slatina.
Diversification Opportunities for Compa Sibiu and Altur Slatina
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Compa and Altur is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Compa Sibiu and Altur Slatina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altur Slatina and Compa Sibiu 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 Compa Sibiu are associated (or correlated) with Altur Slatina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altur Slatina has no effect on the direction of Compa Sibiu i.e., Compa Sibiu and Altur Slatina go up and down completely randomly.
Pair Corralation between Compa Sibiu and Altur Slatina
Assuming the 90 days trading horizon Compa Sibiu is expected to under-perform the Altur Slatina. But the stock apears to be less risky and, when comparing its historical volatility, Compa Sibiu is 1.4 times less risky than Altur Slatina. The stock trades about -0.1 of its potential returns per unit of risk. The Altur Slatina is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 8.95 in Altur Slatina on September 2, 2024 and sell it today you would lose (1.65) from holding Altur Slatina or give up 18.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Compa Sibiu vs. Altur Slatina
Performance |
| Timeline |
| Compa Sibiu |
| Altur Slatina |
Compa Sibiu and Altur Slatina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compa Sibiu and Altur Slatina
The main advantage of trading using opposite Compa Sibiu and Altur Slatina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compa Sibiu position performs unexpectedly, Altur Slatina 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 Altur Slatina will offset losses from the drop in Altur Slatina's long position.| Compa Sibiu vs. Teraplast Bist | Compa Sibiu vs. Comvex SA | Compa Sibiu vs. Feper SA | Compa Sibiu vs. Uzuc SA |
| Altur Slatina vs. TRANSILVANIA INVESTMENTS ALLIANCE | Altur Slatina vs. Evergent Investments SA | Altur Slatina vs. Patria Bank SA | Altur Slatina vs. Biofarm Bucure |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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