Correlation Between PBG SA and HAGA SA
Can any of the company-specific risk be diversified away by investing in both PBG SA and HAGA 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 PBG SA and HAGA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PBG SA and HAGA SA Indstria, you can compare the effects of market volatilities on PBG SA and HAGA 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 PBG SA with a short position of HAGA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBG SA and HAGA SA.
Diversification Opportunities for PBG SA and HAGA SA
Pay attention - limited upside
The 3 months correlation between PBG and HAGA is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding PBG SA and HAGA SA Indstria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAGA SA Indstria and PBG SA 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 PBG SA are associated (or correlated) with HAGA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAGA SA Indstria has no effect on the direction of PBG SA i.e., PBG SA and HAGA SA go up and down completely randomly.
Pair Corralation between PBG SA and HAGA SA
Assuming the 90 days trading horizon PBG SA is expected to generate 3.74 times more return on investment than HAGA SA. However, PBG SA is 3.74 times more volatile than HAGA SA Indstria. It trades about 0.02 of its potential returns per unit of risk. HAGA SA Indstria is currently generating about -0.19 per unit of risk. If you would invest 418.00 in PBG SA on September 1, 2024 and sell it today you would lose (1.00) from holding PBG SA or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PBG SA vs. HAGA SA Indstria
Performance |
| Timeline |
| PBG SA |
| HAGA SA Indstria |
PBG SA and HAGA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PBG SA and HAGA SA
The main advantage of trading using opposite PBG SA and HAGA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBG SA position performs unexpectedly, HAGA 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 HAGA SA will offset losses from the drop in HAGA SA's long position.| PBG SA vs. METISA Metalrgica Timboense | PBG SA vs. Lupatech SA | PBG SA vs. Fras le SA | PBG SA vs. Energisa SA |
| HAGA SA vs. Fras le SA | HAGA SA vs. PBG SA | HAGA SA vs. Springs Global Participaes | HAGA SA vs. Indstrias Romi 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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