Correlation Between Stalprodukt and All In
Can any of the company-specific risk be diversified away by investing in both Stalprodukt and All In 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 Stalprodukt and All In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stalprodukt SA and All In Games, you can compare the effects of market volatilities on Stalprodukt and All In 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 Stalprodukt with a short position of All In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stalprodukt and All In.
Diversification Opportunities for Stalprodukt and All In
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stalprodukt and All is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Stalprodukt SA and All In Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All In Games and Stalprodukt 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 Stalprodukt SA are associated (or correlated) with All In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All In Games has no effect on the direction of Stalprodukt i.e., Stalprodukt and All In go up and down completely randomly.
Pair Corralation between Stalprodukt and All In
Assuming the 90 days trading horizon Stalprodukt SA is expected to under-perform the All In. But the stock apears to be less risky and, when comparing its historical volatility, Stalprodukt SA is 5.8 times less risky than All In. The stock trades about -0.36 of its potential returns per unit of risk. The All In Games is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 117.00 in All In Games on August 27, 2024 and sell it today you would earn a total of 1.00 from holding All In Games or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stalprodukt SA vs. All In Games
Performance |
| Timeline |
| Stalprodukt SA |
| All In Games |
Stalprodukt and All In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stalprodukt and All In
The main advantage of trading using opposite Stalprodukt and All In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stalprodukt position performs unexpectedly, All In 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 All In will offset losses from the drop in All In's long position.| Stalprodukt vs. Asseco South Eastern | Stalprodukt vs. Vercom SA | Stalprodukt vs. CFI Holding SA | Stalprodukt vs. Gobarto 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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