Correlation Between Eiffage SA and ACS Actividades
Can any of the company-specific risk be diversified away by investing in both Eiffage SA and ACS Actividades 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 Eiffage SA and ACS Actividades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eiffage SA ADR and ACS Actividades de, you can compare the effects of market volatilities on Eiffage SA and ACS Actividades 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 Eiffage SA with a short position of ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eiffage SA and ACS Actividades.
Diversification Opportunities for Eiffage SA and ACS Actividades
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eiffage and ACS is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eiffage SA ADR and ACS Actividades de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades de and Eiffage 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 Eiffage SA ADR are associated (or correlated) with ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades de has no effect on the direction of Eiffage SA i.e., Eiffage SA and ACS Actividades go up and down completely randomly.
Pair Corralation between Eiffage SA and ACS Actividades
Assuming the 90 days horizon Eiffage SA ADR is expected to under-perform the ACS Actividades. But the pink sheet apears to be less risky and, when comparing its historical volatility, Eiffage SA ADR is 2.45 times less risky than ACS Actividades. The pink sheet trades about 0.0 of its potential returns per unit of risk. The ACS Actividades de is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,693 in ACS Actividades de on September 3, 2024 and sell it today you would earn a total of 1,840 from holding ACS Actividades de or generate 68.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 79.36% |
| Values | Daily Returns |
Eiffage SA ADR vs. ACS Actividades de
Performance |
| Timeline |
| Eiffage SA ADR |
| ACS Actividades de |
Eiffage SA and ACS Actividades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eiffage SA and ACS Actividades
The main advantage of trading using opposite Eiffage SA and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eiffage SA position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. ACS Actividades de | Eiffage SA vs. ACS Actividades De | Eiffage SA vs. Badger Infrastructure Solutions |
| ACS Actividades vs. Acciona SA | ACS Actividades vs. JGC Corp | ACS Actividades vs. Kajima Corp ADR | ACS Actividades 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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