Correlation Between Bank Central and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both Bank Central and Aenza SAA 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 Bank Central and Aenza SAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Aenza SAA, you can compare the effects of market volatilities on Bank Central and Aenza SAA 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 Bank Central with a short position of Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Aenza SAA.
Diversification Opportunities for Bank Central and Aenza SAA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Aenza is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA and Bank Central 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 Bank Central Asia are associated (or correlated) with Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of Bank Central i.e., Bank Central and Aenza SAA go up and down completely randomly.
Pair Corralation between Bank Central and Aenza SAA
If you would invest 181.00 in Aenza SAA on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Aenza SAA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
Bank Central Asia vs. Aenza SAA
Performance |
| Timeline |
| Bank Central Asia |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Aenza SAA
The main advantage of trading using opposite Bank Central and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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