Correlation Between Squirrel Media and Tubacex SA
Can any of the company-specific risk be diversified away by investing in both Squirrel Media and Tubacex 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 Squirrel Media and Tubacex SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Tubacex SA, you can compare the effects of market volatilities on Squirrel Media and Tubacex 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 Squirrel Media with a short position of Tubacex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Tubacex SA.
Diversification Opportunities for Squirrel Media and Tubacex SA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Squirrel and Tubacex is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and Tubacex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tubacex SA and Squirrel Media 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 Squirrel Media SA are associated (or correlated) with Tubacex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tubacex SA has no effect on the direction of Squirrel Media i.e., Squirrel Media and Tubacex SA go up and down completely randomly.
Pair Corralation between Squirrel Media and Tubacex SA
Assuming the 90 days trading horizon Squirrel Media is expected to generate 1.05 times less return on investment than Tubacex SA. In addition to that, Squirrel Media is 1.02 times more volatile than Tubacex SA. It trades about 0.1 of its total potential returns per unit of risk. Tubacex SA is currently generating about 0.11 per unit of volatility. If you would invest 345.00 in Tubacex SA on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Tubacex SA or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Squirrel Media SA vs. Tubacex SA
Performance |
| Timeline |
| Squirrel Media SA |
| Tubacex SA |
Squirrel Media and Tubacex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Tubacex SA
The main advantage of trading using opposite Squirrel Media and Tubacex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media position performs unexpectedly, Tubacex 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 Tubacex SA will offset losses from the drop in Tubacex SA's long position.| Squirrel Media vs. Amadeus IT Group | Squirrel Media vs. Indra A | Squirrel Media vs. Global Dominion Access | Squirrel Media vs. Altia Consultores SA |
| Tubacex SA vs. All Iron Re | Tubacex SA vs. Technomeca Aerospace SA | Tubacex SA vs. Squirrel Media SA | Tubacex SA vs. Caixabank 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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