Correlation Between Elecnor SA and Mistral Patrimonio
Can any of the company-specific risk be diversified away by investing in both Elecnor SA and Mistral Patrimonio 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 Mistral Patrimonio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elecnor SA and Mistral Patrimonio Inmobiliario, you can compare the effects of market volatilities on Elecnor SA and Mistral Patrimonio 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 Mistral Patrimonio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elecnor SA and Mistral Patrimonio.
Diversification Opportunities for Elecnor SA and Mistral Patrimonio
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elecnor and Mistral is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Elecnor SA and Mistral Patrimonio Inmobiliari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mistral Patrimonio 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 Mistral Patrimonio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mistral Patrimonio has no effect on the direction of Elecnor SA i.e., Elecnor SA and Mistral Patrimonio go up and down completely randomly.
Pair Corralation between Elecnor SA and Mistral Patrimonio
Assuming the 90 days trading horizon Elecnor SA is expected to under-perform the Mistral Patrimonio. But the stock apears to be less risky and, when comparing its historical volatility, Elecnor SA is 27.3 times less risky than Mistral Patrimonio. The stock trades about -0.02 of its potential returns per unit of risk. The Mistral Patrimonio Inmobiliario is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Mistral Patrimonio Inmobiliario on September 1, 2024 and sell it today you would lose (101.00) from holding Mistral Patrimonio Inmobiliario or give up 53.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elecnor SA vs. Mistral Patrimonio Inmobiliari
Performance |
| Timeline |
| Elecnor SA |
| Mistral Patrimonio |
Elecnor SA and Mistral Patrimonio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elecnor SA and Mistral Patrimonio
The main advantage of trading using opposite Elecnor SA and Mistral Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elecnor SA position performs unexpectedly, Mistral Patrimonio 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 Mistral Patrimonio will offset losses from the drop in Mistral Patrimonio's long position.| Elecnor SA vs. Miquel y Costas | Elecnor SA vs. Construcciones y Auxiliar | Elecnor SA vs. Grupo Catalana Occidente | Elecnor SA vs. CIE Automotive SA |
| Mistral Patrimonio vs. Fidere Patrimonio SOCIMI | Mistral Patrimonio vs. Metrovacesa SA | Mistral Patrimonio vs. Elecnor SA | Mistral Patrimonio vs. Mapfre |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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