Correlation Between Raubex and Aveng
Can any of the company-specific risk be diversified away by investing in both Raubex and Aveng 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 Raubex and Aveng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raubex and Aveng, you can compare the effects of market volatilities on Raubex and Aveng 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 Raubex with a short position of Aveng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raubex and Aveng.
Diversification Opportunities for Raubex and Aveng
Very good diversification
The 3 months correlation between Raubex and Aveng is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Raubex and Aveng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aveng and Raubex 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 Raubex are associated (or correlated) with Aveng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aveng has no effect on the direction of Raubex i.e., Raubex and Aveng go up and down completely randomly.
Pair Corralation between Raubex and Aveng
Assuming the 90 days trading horizon Raubex is expected to generate 0.86 times more return on investment than Aveng. However, Raubex is 1.17 times less risky than Aveng. It trades about 0.07 of its potential returns per unit of risk. Aveng is currently generating about -0.01 per unit of risk. If you would invest 261,849 in Raubex on September 3, 2024 and sell it today you would earn a total of 264,251 from holding Raubex or generate 100.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raubex vs. Aveng
Performance |
| Timeline |
| Raubex |
| Aveng |
Raubex and Aveng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raubex and Aveng
The main advantage of trading using opposite Raubex and Aveng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raubex position performs unexpectedly, Aveng 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 Aveng will offset losses from the drop in Aveng's long position.| Raubex vs. Reinet Investments SCA | Raubex vs. HomeChoice Investments | Raubex vs. Life Healthcare | Raubex vs. We Buy Cars |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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