Correlation Between Feper SA and IM Vinaria
Can any of the company-specific risk be diversified away by investing in both Feper SA and IM Vinaria 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 IM Vinaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feper SA and IM Vinaria Purcari, you can compare the effects of market volatilities on Feper SA and IM Vinaria 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 IM Vinaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feper SA and IM Vinaria.
Diversification Opportunities for Feper SA and IM Vinaria
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Feper and WINE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Feper SA and IM Vinaria Purcari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IM Vinaria Purcari 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 IM Vinaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IM Vinaria Purcari has no effect on the direction of Feper SA i.e., Feper SA and IM Vinaria go up and down completely randomly.
Pair Corralation between Feper SA and IM Vinaria
Assuming the 90 days trading horizon Feper SA is expected to under-perform the IM Vinaria. In addition to that, Feper SA is 8.92 times more volatile than IM Vinaria Purcari. It trades about -0.05 of its total potential returns per unit of risk. IM Vinaria Purcari is currently generating about -0.12 per unit of volatility. If you would invest 1,460 in IM Vinaria Purcari on October 23, 2024 and sell it today you would lose (12.00) from holding IM Vinaria Purcari or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.86% |
| Values | Daily Returns |
Feper SA vs. IM Vinaria Purcari
Performance |
| Timeline |
| Feper SA |
| IM Vinaria Purcari |
Feper SA and IM Vinaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feper SA and IM Vinaria
The main advantage of trading using opposite Feper SA and IM Vinaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feper SA position performs unexpectedly, IM Vinaria 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 IM Vinaria will offset losses from the drop in IM Vinaria's long position.| Feper SA vs. Turism Hotelur | Feper SA vs. IHUNT TECHNOLOGY IMPORT EXPORT | Feper SA vs. Digi Communications NV | Feper SA vs. Safetech Innovations SA |
| IM Vinaria vs. TRANSILVANIA INVESTMENTS ALLIANCE | IM Vinaria vs. TRANSILVANIA LEASING SI | IM Vinaria vs. Digi Communications NV | IM Vinaria vs. GRUPUL INDUSTRIAL ELECTROCONTACT |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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