Correlation Between Elecnor SA and Asturiana
Can any of the company-specific risk be diversified away by investing in both Elecnor SA and Asturiana 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 Elecnor SA and Asturiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elecnor SA and Asturiana de Laminados, you can compare the effects of market volatilities on Elecnor SA and Asturiana 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 Elecnor SA with a short position of Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elecnor SA and Asturiana.
Diversification Opportunities for Elecnor SA and Asturiana
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elecnor and Asturiana is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Elecnor SA and Asturiana de Laminados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asturiana de Laminados and Elecnor 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 Elecnor SA are associated (or correlated) with Asturiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asturiana de Laminados has no effect on the direction of Elecnor SA i.e., Elecnor SA and Asturiana go up and down completely randomly.
Pair Corralation between Elecnor SA and Asturiana
If you would invest 1,952 in Elecnor SA on September 13, 2024 and sell it today you would earn a total of 68.00 from holding Elecnor SA or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elecnor SA vs. Asturiana de Laminados
Performance |
| Timeline |
| Elecnor SA |
| Asturiana de Laminados |
Elecnor SA and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elecnor SA and Asturiana
The main advantage of trading using opposite Elecnor SA and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elecnor SA position performs unexpectedly, Asturiana 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 Asturiana will offset losses from the drop in Asturiana's long position.| Elecnor SA vs. Miquel y Costas | Elecnor SA vs. Construcciones y Auxiliar | Elecnor SA vs. Grupo Catalana Occidente | Elecnor SA vs. Tecnicas Reunidas |
| Asturiana vs. Metrovacesa SA | Asturiana vs. Elecnor SA | Asturiana vs. Mapfre | Asturiana vs. Tander Inversiones SOCIMI |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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