Correlation Between Stag Industrial and ATLANTIC PETROLPF
Can any of the company-specific risk be diversified away by investing in both Stag Industrial and ATLANTIC PETROLPF 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 Stag Industrial and ATLANTIC PETROLPF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and ATLANTIC PETROLPF DK, you can compare the effects of market volatilities on Stag Industrial and ATLANTIC PETROLPF 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 Stag Industrial with a short position of ATLANTIC PETROLPF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and ATLANTIC PETROLPF.
Diversification Opportunities for Stag Industrial and ATLANTIC PETROLPF
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stag and ATLANTIC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial and ATLANTIC PETROLPF DK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATLANTIC PETROLPF and Stag Industrial 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 Stag Industrial are associated (or correlated) with ATLANTIC PETROLPF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATLANTIC PETROLPF has no effect on the direction of Stag Industrial i.e., Stag Industrial and ATLANTIC PETROLPF go up and down completely randomly.
Pair Corralation between Stag Industrial and ATLANTIC PETROLPF
Assuming the 90 days trading horizon Stag Industrial is expected to generate 22.54 times less return on investment than ATLANTIC PETROLPF. But when comparing it to its historical volatility, Stag Industrial is 10.02 times less risky than ATLANTIC PETROLPF. It trades about 0.12 of its potential returns per unit of risk. ATLANTIC PETROLPF DK is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 16.00 in ATLANTIC PETROLPF DK on November 3, 2024 and sell it today you would earn a total of 10.00 from holding ATLANTIC PETROLPF DK or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stag Industrial vs. ATLANTIC PETROLPF DK
Performance |
| Timeline |
| Stag Industrial |
| ATLANTIC PETROLPF |
Stag Industrial and ATLANTIC PETROLPF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and ATLANTIC PETROLPF
The main advantage of trading using opposite Stag Industrial and ATLANTIC PETROLPF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial position performs unexpectedly, ATLANTIC PETROLPF 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 ATLANTIC PETROLPF will offset losses from the drop in ATLANTIC PETROLPF's long position.| Stag Industrial vs. AEON STORES | Stag Industrial vs. FAST RETAIL ADR | Stag Industrial vs. Playa Hotels Resorts | Stag Industrial vs. USWE SPORTS AB |
| ATLANTIC PETROLPF vs. Nexstar Media Group | ATLANTIC PETROLPF vs. LINMON MEDIA LTD | ATLANTIC PETROLPF vs. Nishi Nippon Railroad Co | ATLANTIC PETROLPF vs. Prosiebensat 1 Media |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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