Correlation Between Elecnor SA and Robot SA
Can any of the company-specific risk be diversified away by investing in both Elecnor SA and Robot 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 Elecnor SA and Robot SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elecnor SA and Robot SA, you can compare the effects of market volatilities on Elecnor SA and Robot 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 Elecnor SA with a short position of Robot SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elecnor SA and Robot SA.
Diversification Opportunities for Elecnor SA and Robot SA
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elecnor and Robot is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Elecnor SA and Robot SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robot SA 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 Robot SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robot SA has no effect on the direction of Elecnor SA i.e., Elecnor SA and Robot SA go up and down completely randomly.
Pair Corralation between Elecnor SA and Robot SA
Assuming the 90 days trading horizon Elecnor SA is expected to generate 10.89 times less return on investment than Robot SA. But when comparing it to its historical volatility, Elecnor SA is 2.15 times less risky than Robot SA. It trades about 0.08 of its potential returns per unit of risk. Robot SA is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Robot SA on August 31, 2024 and sell it today you would earn a total of 43.00 from holding Robot SA or generate 30.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Elecnor SA vs. Robot SA
Performance |
| Timeline |
| Elecnor SA |
| Robot SA |
Elecnor SA and Robot SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elecnor SA and Robot SA
The main advantage of trading using opposite Elecnor SA and Robot SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elecnor SA position performs unexpectedly, Robot 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 Robot SA will offset losses from the drop in Robot SA'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 |
| Robot SA vs. Metrovacesa SA | Robot SA vs. Elecnor SA | Robot SA vs. Mapfre | Robot SA 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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