Correlation Between Plasticos Compuestos and Asturiana
Can any of the company-specific risk be diversified away by investing in both Plasticos Compuestos and Asturiana 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 Plasticos Compuestos and Asturiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plasticos Compuestos SA and Asturiana de Laminados, you can compare the effects of market volatilities on Plasticos Compuestos and Asturiana 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 Plasticos Compuestos with a short position of Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plasticos Compuestos and Asturiana.
Diversification Opportunities for Plasticos Compuestos and Asturiana
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Plasticos and Asturiana is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Plasticos Compuestos SA and Asturiana de Laminados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asturiana de Laminados and Plasticos Compuestos 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 Plasticos Compuestos SA are associated (or correlated) with Asturiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asturiana de Laminados has no effect on the direction of Plasticos Compuestos i.e., Plasticos Compuestos and Asturiana go up and down completely randomly.
Pair Corralation between Plasticos Compuestos and Asturiana
Assuming the 90 days trading horizon Plasticos Compuestos SA is expected to generate 0.89 times more return on investment than Asturiana. However, Plasticos Compuestos SA is 1.12 times less risky than Asturiana. It trades about 0.02 of its potential returns per unit of risk. Asturiana de Laminados is currently generating about -0.03 per unit of risk. If you would invest 107.00 in Plasticos Compuestos SA on September 12, 2024 and sell it today you would lose (6.00) from holding Plasticos Compuestos SA or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plasticos Compuestos SA vs. Asturiana de Laminados
Performance |
| Timeline |
| Plasticos Compuestos |
| Asturiana de Laminados |
Plasticos Compuestos and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plasticos Compuestos and Asturiana
The main advantage of trading using opposite Plasticos Compuestos and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plasticos Compuestos position performs unexpectedly, Asturiana 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 Asturiana will offset losses from the drop in Asturiana's long position.| Plasticos Compuestos vs. Petroleo Brasileiro SA | Plasticos Compuestos vs. Vale SA | Plasticos Compuestos vs. Banco Santander | Plasticos Compuestos vs. Telefonica |
| Asturiana vs. Plasticos Compuestos SA | Asturiana vs. Bankinter | Asturiana vs. Borges Agricultural Industrial | Asturiana vs. Labiana Health 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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