Correlation Between Weaccess Group and Keyrus SA
Can any of the company-specific risk be diversified away by investing in both Weaccess Group and Keyrus SA 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 Weaccess Group and Keyrus SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weaccess Group SA and Keyrus SA, you can compare the effects of market volatilities on Weaccess Group and Keyrus SA 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 Weaccess Group with a short position of Keyrus SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weaccess Group and Keyrus SA.
Diversification Opportunities for Weaccess Group and Keyrus SA
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weaccess and Keyrus is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Weaccess Group SA and Keyrus SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyrus SA and Weaccess Group 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 Weaccess Group SA are associated (or correlated) with Keyrus SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyrus SA has no effect on the direction of Weaccess Group i.e., Weaccess Group and Keyrus SA go up and down completely randomly.
Pair Corralation between Weaccess Group and Keyrus SA
Assuming the 90 days trading horizon Weaccess Group SA is expected to generate 0.37 times more return on investment than Keyrus SA. However, Weaccess Group SA is 2.68 times less risky than Keyrus SA. It trades about -0.21 of its potential returns per unit of risk. Keyrus SA is currently generating about -0.13 per unit of risk. If you would invest 46.00 in Weaccess Group SA on August 30, 2024 and sell it today you would lose (1.00) from holding Weaccess Group SA or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weaccess Group SA vs. Keyrus SA
Performance |
| Timeline |
| Weaccess Group SA |
| Keyrus SA |
Weaccess Group and Keyrus SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weaccess Group and Keyrus SA
The main advantage of trading using opposite Weaccess Group and Keyrus SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weaccess Group position performs unexpectedly, Keyrus SA 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 Keyrus SA will offset losses from the drop in Keyrus SA's long position.| Weaccess Group vs. Itissalat Al Maghrib | Weaccess Group vs. LleidaNetworks Serveis Telemtics | Weaccess Group vs. Bd Multimedia |
| Keyrus SA vs. Itissalat Al Maghrib | Keyrus SA vs. LleidaNetworks Serveis Telemtics | Keyrus SA vs. Bd Multimedia |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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