Correlation Between CNL Capital and Prodea Real
Can any of the company-specific risk be diversified away by investing in both CNL Capital and Prodea Real 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 CNL Capital and Prodea Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNL Capital EKES AIFM and Prodea Real Estate, you can compare the effects of market volatilities on CNL Capital and Prodea Real 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 CNL Capital with a short position of Prodea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNL Capital and Prodea Real.
Diversification Opportunities for CNL Capital and Prodea Real
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CNL and Prodea is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CNL Capital EKES AIFM and Prodea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodea Real Estate and CNL Capital 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 CNL Capital EKES AIFM are associated (or correlated) with Prodea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodea Real Estate has no effect on the direction of CNL Capital i.e., CNL Capital and Prodea Real go up and down completely randomly.
Pair Corralation between CNL Capital and Prodea Real
Assuming the 90 days trading horizon CNL Capital EKES AIFM is expected to generate 1.18 times more return on investment than Prodea Real. However, CNL Capital is 1.18 times more volatile than Prodea Real Estate. It trades about 0.03 of its potential returns per unit of risk. Prodea Real Estate is currently generating about -0.01 per unit of risk. If you would invest 650.00 in CNL Capital EKES AIFM on September 4, 2024 and sell it today you would earn a total of 75.00 from holding CNL Capital EKES AIFM or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.79% |
| Values | Daily Returns |
CNL Capital EKES AIFM vs. Prodea Real Estate
Performance |
| Timeline |
| CNL Capital EKES |
| Prodea Real Estate |
CNL Capital and Prodea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNL Capital and Prodea Real
The main advantage of trading using opposite CNL Capital and Prodea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNL Capital position performs unexpectedly, Prodea Real 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 Prodea Real will offset losses from the drop in Prodea Real's long position.The idea behind CNL Capital EKES AIFM and Prodea Real Estate 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.| Prodea Real vs. Hellenic Telecommunications Organization | Prodea Real vs. Profile Systems Software | Prodea Real vs. Optima bank SA | Prodea Real vs. As Commercial Industrial |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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