Correlation Between Labiana Health and Asturiana
Can any of the company-specific risk be diversified away by investing in both Labiana Health 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 Labiana Health and Asturiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Labiana Health SA and Asturiana de Laminados, you can compare the effects of market volatilities on Labiana Health 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 Labiana Health with a short position of Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Labiana Health and Asturiana.
Diversification Opportunities for Labiana Health and Asturiana
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Labiana and Asturiana is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Labiana Health 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 Labiana Health 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 Labiana Health 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 Labiana Health i.e., Labiana Health and Asturiana go up and down completely randomly.
Pair Corralation between Labiana Health and Asturiana
Assuming the 90 days trading horizon Labiana Health SA is expected to generate 0.77 times more return on investment than Asturiana. However, Labiana Health SA is 1.3 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 194.00 in Labiana Health SA on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Labiana Health SA or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Labiana Health SA vs. Asturiana de Laminados
Performance |
| Timeline |
| Labiana Health SA |
| Asturiana de Laminados |
Labiana Health and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Labiana Health and Asturiana
The main advantage of trading using opposite Labiana Health and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Labiana Health 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.| Labiana Health vs. Airbus Group SE | Labiana Health vs. Industria de Diseno | Labiana Health vs. Vale SA | Labiana Health vs. Iberdrola SA |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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