Correlation Between REVO INSURANCE and Aena SME
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and Aena SME 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 REVO INSURANCE and Aena SME into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and Aena SME SA, you can compare the effects of market volatilities on REVO INSURANCE and Aena SME 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 REVO INSURANCE with a short position of Aena SME. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and Aena SME.
Diversification Opportunities for REVO INSURANCE and Aena SME
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between REVO and Aena is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and Aena SME SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aena SME SA and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with Aena SME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aena SME SA has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and Aena SME go up and down completely randomly.
Pair Corralation between REVO INSURANCE and Aena SME
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 1.66 times more return on investment than Aena SME. However, REVO INSURANCE is 1.66 times more volatile than Aena SME SA. It trades about 0.29 of its potential returns per unit of risk. Aena SME SA is currently generating about 0.04 per unit of risk. If you would invest 992.00 in REVO INSURANCE SPA on September 1, 2024 and sell it today you would earn a total of 88.00 from holding REVO INSURANCE SPA or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. Aena SME SA
Performance |
| Timeline |
| REVO INSURANCE SPA |
| Aena SME SA |
REVO INSURANCE and Aena SME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and Aena SME
The main advantage of trading using opposite REVO INSURANCE and Aena SME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, Aena SME 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 Aena SME will offset losses from the drop in Aena SME's long position.| REVO INSURANCE vs. The Travelers Companies | REVO INSURANCE vs. Allianz SE | REVO INSURANCE vs. Onxeo SA | REVO INSURANCE vs. Blue Sky Uranium |
| Aena SME vs. CeoTronics AG | Aena SME vs. REVO INSURANCE SPA | Aena SME vs. Webster Financial | Aena SME vs. Mizuho Financial Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |