Correlation Between Prosegur and Miquel Y
Can any of the company-specific risk be diversified away by investing in both Prosegur and Miquel Y 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 Prosegur and Miquel Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosegur and Miquel y Costas, you can compare the effects of market volatilities on Prosegur and Miquel Y 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 Prosegur with a short position of Miquel Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosegur and Miquel Y.
Diversification Opportunities for Prosegur and Miquel Y
Very good diversification
The 3 months correlation between Prosegur and Miquel is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Prosegur and Miquel y Costas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miquel y Costas and Prosegur 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 Prosegur are associated (or correlated) with Miquel Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miquel y Costas has no effect on the direction of Prosegur i.e., Prosegur and Miquel Y go up and down completely randomly.
Pair Corralation between Prosegur and Miquel Y
Assuming the 90 days trading horizon Prosegur is expected to generate 2.75 times less return on investment than Miquel Y. But when comparing it to its historical volatility, Prosegur is 1.14 times less risky than Miquel Y. It trades about 0.02 of its potential returns per unit of risk. Miquel y Costas is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,091 in Miquel y Costas on October 21, 2024 and sell it today you would earn a total of 174.00 from holding Miquel y Costas or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosegur vs. Miquel y Costas
Performance |
| Timeline |
| Prosegur |
| Miquel y Costas |
Prosegur and Miquel Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosegur and Miquel Y
The main advantage of trading using opposite Prosegur and Miquel Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosegur position performs unexpectedly, Miquel Y 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 Miquel Y will offset losses from the drop in Miquel Y's long position.| Prosegur vs. Banco Santander | Prosegur vs. Telefonica | Prosegur vs. Banco Bilbao Vizcaya | Prosegur vs. Petroleo Brasileiro SA |
| Miquel Y vs. Vidrala SA | Miquel Y vs. Grupo Catalana Occidente | Miquel Y vs. Iberpapel Gestion SA | Miquel Y vs. Cia de Distribucion |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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