Correlation Between Comvex SA and Antibiotice
Can any of the company-specific risk be diversified away by investing in both Comvex SA and Antibiotice 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 Comvex SA and Antibiotice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comvex SA and Antibiotice Ia, you can compare the effects of market volatilities on Comvex SA and Antibiotice 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 Comvex SA with a short position of Antibiotice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comvex SA and Antibiotice.
Diversification Opportunities for Comvex SA and Antibiotice
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comvex and Antibiotice is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Comvex SA and Antibiotice Ia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antibiotice Ia and Comvex 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 Comvex SA are associated (or correlated) with Antibiotice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antibiotice Ia has no effect on the direction of Comvex SA i.e., Comvex SA and Antibiotice go up and down completely randomly.
Pair Corralation between Comvex SA and Antibiotice
Assuming the 90 days trading horizon Comvex SA is expected to generate 1.02 times more return on investment than Antibiotice. However, Comvex SA is 1.02 times more volatile than Antibiotice Ia. It trades about 0.09 of its potential returns per unit of risk. Antibiotice Ia is currently generating about -0.14 per unit of risk. If you would invest 7,700 in Comvex SA on August 28, 2024 and sell it today you would earn a total of 500.00 from holding Comvex SA or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comvex SA vs. Antibiotice Ia
Performance |
| Timeline |
| Comvex SA |
| Antibiotice Ia |
Comvex SA and Antibiotice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comvex SA and Antibiotice
The main advantage of trading using opposite Comvex SA and Antibiotice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comvex SA position performs unexpectedly, Antibiotice 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 Antibiotice will offset losses from the drop in Antibiotice's long position.The idea behind Comvex SA and Antibiotice Ia 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.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |