Correlation Between Feper SA and Electroarges
Can any of the company-specific risk be diversified away by investing in both Feper SA and Electroarges 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 Feper SA and Electroarges into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feper SA and Electroarges S, you can compare the effects of market volatilities on Feper SA and Electroarges 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 Feper SA with a short position of Electroarges. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feper SA and Electroarges.
Diversification Opportunities for Feper SA and Electroarges
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Feper and Electroarges is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Feper SA and Electroarges S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electroarges S and Feper 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 Feper SA are associated (or correlated) with Electroarges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electroarges S has no effect on the direction of Feper SA i.e., Feper SA and Electroarges go up and down completely randomly.
Pair Corralation between Feper SA and Electroarges
Assuming the 90 days trading horizon Feper SA is expected to under-perform the Electroarges. But the stock apears to be less risky and, when comparing its historical volatility, Feper SA is 1.85 times less risky than Electroarges. The stock trades about -0.05 of its potential returns per unit of risk. The Electroarges S is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Electroarges S on October 24, 2024 and sell it today you would lose (1.00) from holding Electroarges S or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feper SA vs. Electroarges S
Performance |
| Timeline |
| Feper SA |
| Electroarges S |
Feper SA and Electroarges Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feper SA and Electroarges
The main advantage of trading using opposite Feper SA and Electroarges positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feper SA position performs unexpectedly, Electroarges 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 Electroarges will offset losses from the drop in Electroarges' long position.| Feper SA vs. TRANSILVANIA INVESTMENTS ALLIANCE | Feper SA vs. Safetech Innovations SA | Feper SA vs. Evergent Investments SA | Feper SA vs. TRANSILVANIA LEASING SI |
| Electroarges vs. Digi Communications NV | Electroarges vs. Evergent Investments SA | Electroarges vs. Turism Hotelur | Electroarges vs. Infinity Capital Investments |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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