Correlation Between Now and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both Now and Aenza SAA 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 Now and Aenza SAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Now Inc and Aenza SAA, you can compare the effects of market volatilities on Now and Aenza SAA 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 Now with a short position of Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Now and Aenza SAA.
Diversification Opportunities for Now and Aenza SAA
Very good diversification
The 3 months correlation between Now and Aenza is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Now Inc and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA and Now 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 Now Inc are associated (or correlated) with Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of Now i.e., Now and Aenza SAA go up and down completely randomly.
Pair Corralation between Now and Aenza SAA
If you would invest 1,302 in Now Inc on November 5, 2024 and sell it today you would earn a total of 186.00 from holding Now Inc or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Now Inc vs. Aenza SAA
Performance |
| Timeline |
| Now Inc |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Now and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Now and Aenza SAA
The main advantage of trading using opposite Now and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Now position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.| Now vs. Oil States International | Now vs. Oceaneering International | Now vs. Geospace Technologies | Now vs. Enerflex |
| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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