Correlation Between Solaria Energa and Sacyr SA
Can any of the company-specific risk be diversified away by investing in both Solaria Energa and Sacyr 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 Solaria Energa and Sacyr SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solaria Energa y and Sacyr SA, you can compare the effects of market volatilities on Solaria Energa and Sacyr 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 Solaria Energa with a short position of Sacyr SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solaria Energa and Sacyr SA.
Diversification Opportunities for Solaria Energa and Sacyr SA
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Solaria and Sacyr is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Solaria Energa y and Sacyr SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacyr SA and Solaria Energa 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 Solaria Energa y are associated (or correlated) with Sacyr SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacyr SA has no effect on the direction of Solaria Energa i.e., Solaria Energa and Sacyr SA go up and down completely randomly.
Pair Corralation between Solaria Energa and Sacyr SA
Assuming the 90 days trading horizon Solaria Energa y is expected to under-perform the Sacyr SA. In addition to that, Solaria Energa is 1.82 times more volatile than Sacyr SA. It trades about -0.05 of its total potential returns per unit of risk. Sacyr SA is currently generating about 0.04 per unit of volatility. If you would invest 267.00 in Sacyr SA on August 25, 2024 and sell it today you would earn a total of 37.00 from holding Sacyr SA or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solaria Energa y vs. Sacyr SA
Performance |
| Timeline |
| Solaria Energa y |
| Sacyr SA |
Solaria Energa and Sacyr SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solaria Energa and Sacyr SA
The main advantage of trading using opposite Solaria Energa and Sacyr SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solaria Energa position performs unexpectedly, Sacyr 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 Sacyr SA will offset losses from the drop in Sacyr SA's long position.| Solaria Energa vs. Audax Renovables SA | Solaria Energa vs. Pharma Mar SA | Solaria Energa vs. Cellnex Telecom SA | Solaria Energa vs. Grifols SA |
| Sacyr SA vs. ArcelorMittal SA | Sacyr SA vs. Acerinox | Sacyr SA vs. Fomento de Construcciones | Sacyr SA vs. ACS Actividades de |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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