Correlation Between ACTEOS SA and SQLI SA
Can any of the company-specific risk be diversified away by investing in both ACTEOS SA and SQLI 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 ACTEOS SA and SQLI SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACTEOS SA and SQLI SA, you can compare the effects of market volatilities on ACTEOS SA and SQLI 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 ACTEOS SA with a short position of SQLI SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACTEOS SA and SQLI SA.
Diversification Opportunities for ACTEOS SA and SQLI SA
Excellent diversification
The 3 months correlation between ACTEOS and SQLI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA and SQLI SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQLI SA and ACTEOS 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 ACTEOS SA are associated (or correlated) with SQLI SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQLI SA has no effect on the direction of ACTEOS SA i.e., ACTEOS SA and SQLI SA go up and down completely randomly.
Pair Corralation between ACTEOS SA and SQLI SA
Assuming the 90 days trading horizon ACTEOS SA is expected to under-perform the SQLI SA. But the stock apears to be less risky and, when comparing its historical volatility, ACTEOS SA is 1.05 times less risky than SQLI SA. The stock trades about -0.02 of its potential returns per unit of risk. The SQLI SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,331 in SQLI SA on September 2, 2024 and sell it today you would earn a total of 1,069 from holding SQLI SA or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACTEOS SA vs. SQLI SA
Performance |
| Timeline |
| ACTEOS SA |
| SQLI SA |
ACTEOS SA and SQLI SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACTEOS SA and SQLI SA
The main advantage of trading using opposite ACTEOS SA and SQLI SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACTEOS SA position performs unexpectedly, SQLI 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 SQLI SA will offset losses from the drop in SQLI SA's long position.| ACTEOS SA vs. Avenir Telecom SA | ACTEOS SA vs. ATEME SA | ACTEOS SA vs. Lectra SA | ACTEOS SA vs. BigBen Interactive |
| SQLI SA vs. Sword Group SE | SQLI SA vs. Neurones | SQLI SA vs. Sopra Steria Group | SQLI SA vs. Linedata Services SA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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