Correlation Between Ion Beam and Sofina Socit
Can any of the company-specific risk be diversified away by investing in both Ion Beam and Sofina Socit 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 Ion Beam and Sofina Socit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Sofina Socit Anonyme, you can compare the effects of market volatilities on Ion Beam and Sofina Socit 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 Ion Beam with a short position of Sofina Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Sofina Socit.
Diversification Opportunities for Ion Beam and Sofina Socit
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ion and Sofina is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Sofina Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofina Socit Anonyme and Ion Beam 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 Ion Beam Applications are associated (or correlated) with Sofina Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofina Socit Anonyme has no effect on the direction of Ion Beam i.e., Ion Beam and Sofina Socit go up and down completely randomly.
Pair Corralation between Ion Beam and Sofina Socit
Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 1.9 times more return on investment than Sofina Socit. However, Ion Beam is 1.9 times more volatile than Sofina Socit Anonyme. It trades about -0.01 of its potential returns per unit of risk. Sofina Socit Anonyme is currently generating about -0.17 per unit of risk. If you would invest 1,386 in Ion Beam Applications on August 27, 2024 and sell it today you would lose (12.00) from holding Ion Beam Applications or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. Sofina Socit Anonyme
Performance |
| Timeline |
| Ion Beam Applications |
| Sofina Socit Anonyme |
Ion Beam and Sofina Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Sofina Socit
The main advantage of trading using opposite Ion Beam and Sofina Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, Sofina Socit 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 Sofina Socit will offset losses from the drop in Sofina Socit's long position.| Ion Beam vs. EVS Broadcast Equipment | Ion Beam vs. NV Bekaert SA | Ion Beam vs. Melexis NV | Ion Beam vs. Barco NV |
| Sofina Socit vs. Retail Estates | Sofina Socit vs. Home Invest Belgium | Sofina Socit vs. Shurgard Self Storage | Sofina Socit vs. Vastned Retail Belgium |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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