Correlation Between Sofina Socit and Argen X
Can any of the company-specific risk be diversified away by investing in both Sofina Socit and Argen X 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 Sofina Socit and Argen X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sofina Socit Anonyme and Argen X, you can compare the effects of market volatilities on Sofina Socit and Argen X 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 Sofina Socit with a short position of Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sofina Socit and Argen X.
Diversification Opportunities for Sofina Socit and Argen X
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sofina and Argen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sofina Socit Anonyme and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X and Sofina Socit 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 Sofina Socit Anonyme are associated (or correlated) with Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Sofina Socit i.e., Sofina Socit and Argen X go up and down completely randomly.
Pair Corralation between Sofina Socit and Argen X
Assuming the 90 days trading horizon Sofina Socit Anonyme is expected to generate 1.13 times more return on investment than Argen X. However, Sofina Socit is 1.13 times more volatile than Argen X. It trades about -0.04 of its potential returns per unit of risk. Argen X is currently generating about -0.14 per unit of risk. If you would invest 24,420 in Sofina Socit Anonyme on November 29, 2024 and sell it today you would lose (300.00) from holding Sofina Socit Anonyme or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sofina Socit Anonyme vs. Argen X
Performance |
| Timeline |
| Sofina Socit Anonyme |
| Argen X |
Sofina Socit and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sofina Socit and Argen X
The main advantage of trading using opposite Sofina Socit and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sofina Socit position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X's long position.| Sofina Socit vs. Shurgard Self Storage | Sofina Socit vs. Ion Beam Applications | Sofina Socit vs. Retail Estates | Sofina Socit vs. Home Invest Belgium |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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