Correlation Between Care Property and Atenor SA
Can any of the company-specific risk be diversified away by investing in both Care Property and Atenor SA 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 Care Property and Atenor SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Care Property Invest and Atenor SA, you can compare the effects of market volatilities on Care Property and Atenor SA 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 Care Property with a short position of Atenor SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Care Property and Atenor SA.
Diversification Opportunities for Care Property and Atenor SA
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Care and Atenor is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Care Property Invest and Atenor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atenor SA and Care Property 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 Care Property Invest are associated (or correlated) with Atenor SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atenor SA has no effect on the direction of Care Property i.e., Care Property and Atenor SA go up and down completely randomly.
Pair Corralation between Care Property and Atenor SA
Assuming the 90 days trading horizon Care Property Invest is expected to generate 1.14 times more return on investment than Atenor SA. However, Care Property is 1.14 times more volatile than Atenor SA. It trades about -0.08 of its potential returns per unit of risk. Atenor SA is currently generating about -0.23 per unit of risk. If you would invest 1,268 in Care Property Invest on August 31, 2024 and sell it today you would lose (38.00) from holding Care Property Invest or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Care Property Invest vs. Atenor SA
Performance |
| Timeline |
| Care Property Invest |
| Atenor SA |
Care Property and Atenor SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Care Property and Atenor SA
The main advantage of trading using opposite Care Property and Atenor SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Care Property position performs unexpectedly, Atenor SA 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 Atenor SA will offset losses from the drop in Atenor SA's long position.| Care Property vs. Atenor SA | Care Property vs. GIMV NV | Care Property vs. Aedifica | Care Property vs. VGP NV |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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