Correlation Between Naturgy Energy and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both Naturgy Energy and Suntory Beverage 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 Naturgy Energy and Suntory Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naturgy Energy Group and Suntory Beverage Food, you can compare the effects of market volatilities on Naturgy Energy and Suntory Beverage 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 Naturgy Energy with a short position of Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naturgy Energy and Suntory Beverage.
Diversification Opportunities for Naturgy Energy and Suntory Beverage
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Naturgy and Suntory is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Naturgy Energy Group and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food and Naturgy Energy 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 Naturgy Energy Group are associated (or correlated) with Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of Naturgy Energy i.e., Naturgy Energy and Suntory Beverage go up and down completely randomly.
Pair Corralation between Naturgy Energy and Suntory Beverage
Assuming the 90 days horizon Naturgy Energy Group is expected to generate 0.92 times more return on investment than Suntory Beverage. However, Naturgy Energy Group is 1.08 times less risky than Suntory Beverage. It trades about 0.01 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about 0.0 per unit of risk. If you would invest 2,211 in Naturgy Energy Group on September 15, 2024 and sell it today you would earn a total of 111.00 from holding Naturgy Energy Group or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naturgy Energy Group vs. Suntory Beverage Food
Performance |
| Timeline |
| Naturgy Energy Group |
| Suntory Beverage Food |
Naturgy Energy and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naturgy Energy and Suntory Beverage
The main advantage of trading using opposite Naturgy Energy and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naturgy Energy position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| Naturgy Energy vs. Suntory Beverage Food | Naturgy Energy vs. THAI BEVERAGE | Naturgy Energy vs. Pentair plc | Naturgy Energy vs. Fevertree Drinks PLC |
| Suntory Beverage vs. Superior Plus Corp | Suntory Beverage vs. SIVERS SEMICONDUCTORS AB | Suntory Beverage vs. NorAm Drilling AS | Suntory Beverage vs. Norsk Hydro ASA |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |