Correlation Between Skyline Investment and RAFAKO SA
Can any of the company-specific risk be diversified away by investing in both Skyline Investment and RAFAKO 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 Skyline Investment and RAFAKO SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skyline Investment SA and RAFAKO SA, you can compare the effects of market volatilities on Skyline Investment and RAFAKO 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 Skyline Investment with a short position of RAFAKO SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skyline Investment and RAFAKO SA.
Diversification Opportunities for Skyline Investment and RAFAKO SA
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Skyline and RAFAKO is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Skyline Investment SA and RAFAKO SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAFAKO SA and Skyline Investment 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 Skyline Investment SA are associated (or correlated) with RAFAKO SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAFAKO SA has no effect on the direction of Skyline Investment i.e., Skyline Investment and RAFAKO SA go up and down completely randomly.
Pair Corralation between Skyline Investment and RAFAKO SA
Assuming the 90 days trading horizon Skyline Investment is expected to generate 2.49 times less return on investment than RAFAKO SA. But when comparing it to its historical volatility, Skyline Investment SA is 4.48 times less risky than RAFAKO SA. It trades about 0.1 of its potential returns per unit of risk. RAFAKO SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 34.00 in RAFAKO SA on September 14, 2024 and sell it today you would earn a total of 0.00 from holding RAFAKO SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skyline Investment SA vs. RAFAKO SA
Performance |
| Timeline |
| Skyline Investment |
| RAFAKO SA |
Skyline Investment and RAFAKO SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skyline Investment and RAFAKO SA
The main advantage of trading using opposite Skyline Investment and RAFAKO SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skyline Investment position performs unexpectedly, RAFAKO 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 RAFAKO SA will offset losses from the drop in RAFAKO SA's long position.| Skyline Investment vs. LSI Software SA | Skyline Investment vs. Echo Investment SA | Skyline Investment vs. Quantum Software SA | Skyline Investment vs. Mercator Medical SA |
| RAFAKO SA vs. Skyline Investment SA | RAFAKO SA vs. Alior Bank SA | RAFAKO SA vs. MCI Management SA | RAFAKO SA vs. Bank Millennium 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |