Correlation Between Mapfre and Asturiana
Can any of the company-specific risk be diversified away by investing in both Mapfre 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 Mapfre and Asturiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapfre and Asturiana de Laminados, you can compare the effects of market volatilities on Mapfre 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 Mapfre with a short position of Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapfre and Asturiana.
Diversification Opportunities for Mapfre and Asturiana
Excellent diversification
The 3 months correlation between Mapfre and Asturiana is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mapfre 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 Mapfre 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 Mapfre 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 Mapfre i.e., Mapfre and Asturiana go up and down completely randomly.
Pair Corralation between Mapfre and Asturiana
If you would invest 9.58 in Asturiana de Laminados on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Asturiana de Laminados or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapfre vs. Asturiana de Laminados
Performance |
| Timeline |
| Mapfre |
| Asturiana de Laminados |
Mapfre and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapfre and Asturiana
The main advantage of trading using opposite Mapfre and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapfre 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.The idea behind Mapfre and Asturiana de Laminados pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Asturiana vs. Metrovacesa SA | Asturiana vs. Elecnor SA | Asturiana vs. Mapfre | Asturiana vs. Tander Inversiones SOCIMI |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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