Correlation Between Investment Friends and Stalprodukt
Can any of the company-specific risk be diversified away by investing in both Investment Friends and Stalprodukt 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 Investment Friends and Stalprodukt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Friends Capital and Stalprodukt SA, you can compare the effects of market volatilities on Investment Friends and Stalprodukt 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 Investment Friends with a short position of Stalprodukt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Friends and Stalprodukt.
Diversification Opportunities for Investment Friends and Stalprodukt
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and Stalprodukt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment Friends Capital and Stalprodukt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stalprodukt SA and Investment Friends 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 Investment Friends Capital are associated (or correlated) with Stalprodukt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stalprodukt SA has no effect on the direction of Investment Friends i.e., Investment Friends and Stalprodukt go up and down completely randomly.
Pair Corralation between Investment Friends and Stalprodukt
If you would invest 22,600 in Stalprodukt SA on September 2, 2024 and sell it today you would lose (300.00) from holding Stalprodukt SA or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 67.21% |
| Values | Daily Returns |
Investment Friends Capital vs. Stalprodukt SA
Performance |
| Timeline |
| Investment Friends |
| Stalprodukt SA |
Investment Friends and Stalprodukt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Friends and Stalprodukt
The main advantage of trading using opposite Investment Friends and Stalprodukt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Friends position performs unexpectedly, Stalprodukt 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 Stalprodukt will offset losses from the drop in Stalprodukt's long position.| Investment Friends vs. Asseco Business Solutions | Investment Friends vs. Detalion Games SA | Investment Friends vs. Asseco South Eastern | Investment Friends vs. CFI Holding SA |
| Stalprodukt vs. Echo Investment SA | Stalprodukt vs. Esotiq Henderson SA | Stalprodukt vs. Asseco South Eastern | Stalprodukt vs. Vercom SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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