Correlation Between Mapfre and Proeduca Altus
Can any of the company-specific risk be diversified away by investing in both Mapfre and Proeduca Altus 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 Proeduca Altus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapfre and Proeduca Altus SA, you can compare the effects of market volatilities on Mapfre and Proeduca Altus 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 Proeduca Altus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapfre and Proeduca Altus.
Diversification Opportunities for Mapfre and Proeduca Altus
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mapfre and Proeduca is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mapfre and Proeduca Altus SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proeduca Altus SA 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 Proeduca Altus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proeduca Altus SA has no effect on the direction of Mapfre i.e., Mapfre and Proeduca Altus go up and down completely randomly.
Pair Corralation between Mapfre and Proeduca Altus
Assuming the 90 days trading horizon Mapfre is expected to generate 2.26 times less return on investment than Proeduca Altus. But when comparing it to its historical volatility, Mapfre is 1.3 times less risky than Proeduca Altus. It trades about 0.09 of its potential returns per unit of risk. Proeduca Altus SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,730 in Proeduca Altus SA on September 2, 2024 and sell it today you would earn a total of 1,270 from holding Proeduca Altus SA or generate 73.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.84% |
| Values | Daily Returns |
Mapfre vs. Proeduca Altus SA
Performance |
| Timeline |
| Mapfre |
| Proeduca Altus SA |
Mapfre and Proeduca Altus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapfre and Proeduca Altus
The main advantage of trading using opposite Mapfre and Proeduca Altus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapfre position performs unexpectedly, Proeduca Altus 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 Proeduca Altus will offset losses from the drop in Proeduca Altus' long position.| Mapfre vs. Bankinter | Mapfre vs. Cellnex Telecom SA | Mapfre vs. Azaria Rental SOCIMI | Mapfre vs. Ebro Foods |
| Proeduca Altus vs. Techo Hogar SOCIMI, | Proeduca Altus vs. Caixabank SA | Proeduca Altus vs. International Consolidated Airlines | Proeduca Altus vs. Technomeca Aerospace 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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