Correlation Between Soditech and Fill Up
Can any of the company-specific risk be diversified away by investing in both Soditech and Fill Up 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 Soditech and Fill Up into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soditech SA and Fill Up Media, you can compare the effects of market volatilities on Soditech and Fill Up 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 Soditech with a short position of Fill Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soditech and Fill Up.
Diversification Opportunities for Soditech and Fill Up
Significant diversification
The 3 months correlation between Soditech and Fill is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Soditech SA and Fill Up Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fill Up Media and Soditech 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 Soditech SA are associated (or correlated) with Fill Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fill Up Media has no effect on the direction of Soditech i.e., Soditech and Fill Up go up and down completely randomly.
Pair Corralation between Soditech and Fill Up
Assuming the 90 days trading horizon Soditech SA is expected to generate 3.08 times more return on investment than Fill Up. However, Soditech is 3.08 times more volatile than Fill Up Media. It trades about 0.04 of its potential returns per unit of risk. Fill Up Media is currently generating about 0.02 per unit of risk. If you would invest 115.00 in Soditech SA on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Soditech SA or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soditech SA vs. Fill Up Media
Performance |
| Timeline |
| Soditech SA |
| Fill Up Media |
Soditech and Fill Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soditech and Fill Up
The main advantage of trading using opposite Soditech and Fill Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soditech position performs unexpectedly, Fill Up 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 Fill Up will offset losses from the drop in Fill Up's long position.The idea behind Soditech SA and Fill Up Media 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.| Fill Up vs. Nacon Sa | Fill Up vs. Icape Holding | Fill Up vs. Grolleau SAS | Fill Up vs. Hydrogene De France |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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