Correlation Between Shoper SA and Inter Cars
Can any of the company-specific risk be diversified away by investing in both Shoper SA and Inter Cars 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 Shoper SA and Inter Cars into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoper SA and Inter Cars SA, you can compare the effects of market volatilities on Shoper SA and Inter Cars 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 Shoper SA with a short position of Inter Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoper SA and Inter Cars.
Diversification Opportunities for Shoper SA and Inter Cars
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shoper and Inter is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shoper SA and Inter Cars SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Cars SA and Shoper 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 Shoper SA are associated (or correlated) with Inter Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Cars SA has no effect on the direction of Shoper SA i.e., Shoper SA and Inter Cars go up and down completely randomly.
Pair Corralation between Shoper SA and Inter Cars
Assuming the 90 days trading horizon Shoper SA is expected to under-perform the Inter Cars. In addition to that, Shoper SA is 1.29 times more volatile than Inter Cars SA. It trades about -0.06 of its total potential returns per unit of risk. Inter Cars SA is currently generating about 0.02 per unit of volatility. If you would invest 51,400 in Inter Cars SA on September 13, 2024 and sell it today you would earn a total of 500.00 from holding Inter Cars SA or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Shoper SA vs. Inter Cars SA
Performance |
| Timeline |
| Shoper SA |
| Inter Cars SA |
Shoper SA and Inter Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoper SA and Inter Cars
The main advantage of trading using opposite Shoper SA and Inter Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoper SA position performs unexpectedly, Inter Cars 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 Inter Cars will offset losses from the drop in Inter Cars' long position.| Shoper SA vs. MW Trade SA | Shoper SA vs. UF Games SA | Shoper SA vs. Monnari Trade SA | Shoper SA vs. Logintrade SA |
| Inter Cars vs. Banco Santander SA | Inter Cars vs. UniCredit SpA | Inter Cars vs. CEZ as | Inter Cars vs. Polski Koncern Naftowy |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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