Correlation Between Safetech Innovations and Bucharest BET-NG
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By analyzing existing cross correlation between Safetech Innovations SA and Bucharest BET-NG, you can compare the effects of market volatilities on Safetech Innovations and Bucharest BET-NG 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 Bucharest BET-NG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safetech Innovations and Bucharest BET-NG.
Diversification Opportunities for Safetech Innovations and Bucharest BET-NG
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Safetech and Bucharest is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Safetech Innovations SA and Bucharest BET-NG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bucharest BET-NG 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 Bucharest BET-NG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bucharest BET-NG has no effect on the direction of Safetech Innovations i.e., Safetech Innovations and Bucharest BET-NG go up and down completely randomly.
Pair Corralation between Safetech Innovations and Bucharest BET-NG
Assuming the 90 days trading horizon Safetech Innovations SA is expected to generate 1.59 times more return on investment than Bucharest BET-NG. However, Safetech Innovations is 1.59 times more volatile than Bucharest BET-NG. It trades about 0.04 of its potential returns per unit of risk. Bucharest BET-NG is currently generating about -0.03 per unit of risk. If you would invest 236.00 in Safetech Innovations SA on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Safetech Innovations SA or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safetech Innovations SA vs. Bucharest BET-NG
Performance |
| Timeline |
Safetech Innovations and Bucharest BET-NG Volatility Contrast
Predicted Return Density |
| Returns |
Safetech Innovations SA
Pair trading matchups for Safetech Innovations
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Pair Trading with Safetech Innovations and Bucharest BET-NG
The main advantage of trading using opposite Safetech Innovations and Bucharest BET-NG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safetech Innovations position performs unexpectedly, Bucharest BET-NG 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 Bucharest BET-NG will offset losses from the drop in Bucharest BET-NG's long position.| Safetech Innovations vs. Digi Communications NV | Safetech Innovations vs. IHUNT TECHNOLOGY IMPORT EXPORT | Safetech Innovations vs. Patria Bank SA | Safetech Innovations vs. Infinity Capital Investments |
| Bucharest BET-NG vs. Compania Hoteliera InterContinental | Bucharest BET-NG vs. AROBS TRANSILVANIA SOFTWARE | Bucharest BET-NG vs. Infinity Capital Investments | Bucharest BET-NG vs. Patria Bank 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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