Correlation Between Safetech Innovations and Atelierele CFR
Can any of the company-specific risk be diversified away by investing in both Safetech Innovations and Atelierele CFR 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 Safetech Innovations and Atelierele CFR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safetech Innovations SA and Atelierele CFR Grivita, you can compare the effects of market volatilities on Safetech Innovations and Atelierele CFR 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 Safetech Innovations with a short position of Atelierele CFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safetech Innovations and Atelierele CFR.
Diversification Opportunities for Safetech Innovations and Atelierele CFR
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Safetech and Atelierele is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Safetech Innovations SA and Atelierele CFR Grivita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atelierele CFR Grivita and Safetech Innovations 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 Safetech Innovations SA are associated (or correlated) with Atelierele CFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atelierele CFR Grivita has no effect on the direction of Safetech Innovations i.e., Safetech Innovations and Atelierele CFR go up and down completely randomly.
Pair Corralation between Safetech Innovations and Atelierele CFR
Assuming the 90 days trading horizon Safetech Innovations SA is expected to under-perform the Atelierele CFR. But the stock apears to be less risky and, when comparing its historical volatility, Safetech Innovations SA is 1.96 times less risky than Atelierele CFR. The stock trades about -0.04 of its potential returns per unit of risk. The Atelierele CFR Grivita is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 5,300 in Atelierele CFR Grivita on August 29, 2024 and sell it today you would lose (150.00) from holding Atelierele CFR Grivita or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safetech Innovations SA vs. Atelierele CFR Grivita
Performance |
| Timeline |
| Safetech Innovations |
| Atelierele CFR Grivita |
Safetech Innovations and Atelierele CFR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safetech Innovations and Atelierele CFR
The main advantage of trading using opposite Safetech Innovations and Atelierele CFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safetech Innovations position performs unexpectedly, Atelierele CFR 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 Atelierele CFR will offset losses from the drop in Atelierele CFR's long position.| Safetech Innovations vs. Turism Felix B | Safetech Innovations vs. TRANSILVANIA LEASING SI | Safetech Innovations vs. Norofert SA | Safetech Innovations vs. Biofarm Bucure |
| Atelierele CFR vs. Teraplast Bist | Atelierele CFR vs. Electroarges S | Atelierele CFR vs. Comvex SA | Atelierele CFR vs. IAR 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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