Correlation Between Recrusul and HAGA SA
Can any of the company-specific risk be diversified away by investing in both Recrusul 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 Recrusul and HAGA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Recrusul SA and HAGA SA Indstria, you can compare the effects of market volatilities on Recrusul 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 Recrusul with a short position of HAGA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Recrusul and HAGA SA.
Diversification Opportunities for Recrusul and HAGA SA
Almost no diversification
The 3 months correlation between Recrusul and HAGA is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Recrusul 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 Recrusul 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 Recrusul 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 Recrusul i.e., Recrusul and HAGA SA go up and down completely randomly.
Pair Corralation between Recrusul and HAGA SA
Assuming the 90 days trading horizon Recrusul SA is expected to generate 3.51 times more return on investment than HAGA SA. However, Recrusul is 3.51 times more volatile than HAGA SA Indstria. It trades about 0.06 of its potential returns per unit of risk. HAGA SA Indstria is currently generating about 0.01 per unit of risk. If you would invest 148.00 in Recrusul SA on August 24, 2024 and sell it today you would earn a total of 34.00 from holding Recrusul SA or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Recrusul SA vs. HAGA SA Indstria
Performance |
| Timeline |
| Recrusul SA |
| HAGA SA Indstria |
Recrusul and HAGA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Recrusul and HAGA SA
The main advantage of trading using opposite Recrusul and HAGA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Recrusul 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.The idea behind Recrusul SA and HAGA SA Indstria pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HAGA SA vs. METISA Metalrgica Timboense | HAGA SA vs. Wetzel SA | HAGA SA vs. Recrusul SA | HAGA SA vs. Randon SA Implementos |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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