Correlation Between Celyad SA and Aedifica
Can any of the company-specific risk be diversified away by investing in both Celyad SA and Aedifica 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 Celyad SA and Aedifica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and Aedifica, you can compare the effects of market volatilities on Celyad SA and Aedifica 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 Celyad SA with a short position of Aedifica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and Aedifica.
Diversification Opportunities for Celyad SA and Aedifica
Pay attention - limited upside
The 3 months correlation between Celyad and Aedifica is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Aedifica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedifica and Celyad 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 Celyad SA are associated (or correlated) with Aedifica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedifica has no effect on the direction of Celyad SA i.e., Celyad SA and Aedifica go up and down completely randomly.
Pair Corralation between Celyad SA and Aedifica
Assuming the 90 days trading horizon Celyad SA is expected to generate 19.91 times more return on investment than Aedifica. However, Celyad SA is 19.91 times more volatile than Aedifica. It trades about 0.26 of its potential returns per unit of risk. Aedifica is currently generating about -0.15 per unit of risk. If you would invest 28.00 in Celyad SA on August 28, 2024 and sell it today you would earn a total of 39.00 from holding Celyad SA or generate 139.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celyad SA vs. Aedifica
Performance |
| Timeline |
| Celyad SA |
| Aedifica |
Celyad SA and Aedifica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and Aedifica
The main advantage of trading using opposite Celyad SA and Aedifica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA position performs unexpectedly, Aedifica 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 Aedifica will offset losses from the drop in Aedifica's long position.| Celyad SA vs. Onward Medical NV | Celyad SA vs. Ion Beam Applications | Celyad SA vs. Vastned Retail Belgium | Celyad SA vs. Shurgard Self Storage |
| Aedifica vs. Cofinimmo SA | Aedifica vs. Warehouses de Pauw | Aedifica vs. Care Property Invest | Aedifica vs. Xior Student Housing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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