Correlation Between REVO INSURANCE and S-E BANKEN
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and S-E BANKEN 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 S-E BANKEN 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 S E BANKEN A , you can compare the effects of market volatilities on REVO INSURANCE and S-E BANKEN 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 S-E BANKEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and S-E BANKEN.
Diversification Opportunities for REVO INSURANCE and S-E BANKEN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between REVO and S-E is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and S E BANKEN A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S E BANKEN 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 S-E BANKEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S E BANKEN has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and S-E BANKEN go up and down completely randomly.
Pair Corralation between REVO INSURANCE and S-E BANKEN
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 0.78 times more return on investment than S-E BANKEN. However, REVO INSURANCE SPA is 1.27 times less risky than S-E BANKEN. It trades about 0.1 of its potential returns per unit of risk. S E BANKEN A is currently generating about 0.07 per unit of risk. If you would invest 774.00 in REVO INSURANCE SPA on November 9, 2024 and sell it today you would earn a total of 386.00 from holding REVO INSURANCE SPA or generate 49.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. S E BANKEN A
Performance |
| Timeline |
| REVO INSURANCE SPA |
| S E BANKEN |
REVO INSURANCE and S-E BANKEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and S-E BANKEN
The main advantage of trading using opposite REVO INSURANCE and S-E BANKEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, S-E BANKEN 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 S-E BANKEN will offset losses from the drop in S-E BANKEN's long position.| REVO INSURANCE vs. China Communications Services | REVO INSURANCE vs. Universal Health Realty | REVO INSURANCE vs. Cairo Communication SpA | REVO INSURANCE vs. Phibro Animal Health |
| S-E BANKEN vs. Global Ship Lease | S-E BANKEN vs. Sumitomo Mitsui Construction | S-E BANKEN vs. WILLIS LEASE FIN | S-E BANKEN vs. WIMFARM SA EO |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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