Correlation Between Samse SA and Unibel SA
Can any of the company-specific risk be diversified away by investing in both Samse SA and Unibel 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 Samse SA and Unibel SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samse SA and Unibel SA, you can compare the effects of market volatilities on Samse SA and Unibel 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 Samse SA with a short position of Unibel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samse SA and Unibel SA.
Diversification Opportunities for Samse SA and Unibel SA
Pay attention - limited upside
The 3 months correlation between Samse and Unibel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samse SA and Unibel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibel SA and Samse 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 Samse SA are associated (or correlated) with Unibel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibel SA has no effect on the direction of Samse SA i.e., Samse SA and Unibel SA go up and down completely randomly.
Pair Corralation between Samse SA and Unibel SA
Assuming the 90 days trading horizon Samse SA is expected to under-perform the Unibel SA. In addition to that, Samse SA is 2.16 times more volatile than Unibel SA. It trades about -0.24 of its total potential returns per unit of risk. Unibel SA is currently generating about 1.22 per unit of volatility. If you would invest 97,500 in Unibel SA on November 9, 2024 and sell it today you would earn a total of 2,000 from holding Unibel SA or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 18.18% |
| Values | Daily Returns |
Samse SA vs. Unibel SA
Performance |
| Timeline |
| Samse SA |
| Unibel SA |
Risk-Adjusted Performance
Market Crasher
Weak | Strong |
Samse SA and Unibel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samse SA and Unibel SA
The main advantage of trading using opposite Samse SA and Unibel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samse SA position performs unexpectedly, Unibel 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 Unibel SA will offset losses from the drop in Unibel SA's long position.The idea behind Samse SA and Unibel SA 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.| Unibel SA vs. Savencia SA | Unibel SA vs. Societe LDC SA | Unibel SA vs. Robertet SA | Unibel SA vs. Malteries Franco Belges Socit |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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