Correlation Between Atea ASA and REVO INSURANCE
Can any of the company-specific risk be diversified away by investing in both Atea ASA and REVO INSURANCE 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 Atea ASA and REVO INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atea ASA and REVO INSURANCE SPA, you can compare the effects of market volatilities on Atea ASA and REVO INSURANCE 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 Atea ASA with a short position of REVO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atea ASA and REVO INSURANCE.
Diversification Opportunities for Atea ASA and REVO INSURANCE
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Atea and REVO is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Atea ASA and REVO INSURANCE SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REVO INSURANCE SPA and Atea ASA 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 Atea ASA are associated (or correlated) with REVO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REVO INSURANCE SPA has no effect on the direction of Atea ASA i.e., Atea ASA and REVO INSURANCE go up and down completely randomly.
Pair Corralation between Atea ASA and REVO INSURANCE
Assuming the 90 days trading horizon Atea ASA is expected to generate 2.88 times less return on investment than REVO INSURANCE. In addition to that, Atea ASA is 1.24 times more volatile than REVO INSURANCE SPA. It trades about 0.08 of its total potential returns per unit of risk. REVO INSURANCE SPA is currently generating about 0.29 per unit of volatility. If you would invest 1,045 in REVO INSURANCE SPA on September 23, 2024 and sell it today you would earn a total of 90.00 from holding REVO INSURANCE SPA or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atea ASA vs. REVO INSURANCE SPA
Performance |
| Timeline |
| Atea ASA |
| REVO INSURANCE SPA |
Atea ASA and REVO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atea ASA and REVO INSURANCE
The main advantage of trading using opposite Atea ASA and REVO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atea ASA position performs unexpectedly, REVO INSURANCE 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 REVO INSURANCE will offset losses from the drop in REVO INSURANCE's long position.| Atea ASA vs. LIFENET INSURANCE CO | Atea ASA vs. PARKEN Sport Entertainment | Atea ASA vs. Safety Insurance Group | Atea ASA vs. ADRIATIC METALS LS 013355 |
| REVO INSURANCE vs. The Travelers Companies | REVO INSURANCE vs. Atea ASA | REVO INSURANCE vs. ATHENE HOLDING PRFSERC | REVO INSURANCE vs. CLOUDFLARE INC A |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |