Correlation Between Teraplast Bist and Atelierele CFR
Can any of the company-specific risk be diversified away by investing in both Teraplast Bist and Atelierele CFR 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 Teraplast Bist and Atelierele CFR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teraplast Bist and Atelierele CFR Grivita, you can compare the effects of market volatilities on Teraplast Bist and Atelierele CFR 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 Teraplast Bist with a short position of Atelierele CFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teraplast Bist and Atelierele CFR.
Diversification Opportunities for Teraplast Bist and Atelierele CFR
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Teraplast and Atelierele is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Teraplast Bist and Atelierele CFR Grivita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atelierele CFR Grivita and Teraplast Bist 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 Teraplast Bist are associated (or correlated) with Atelierele CFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atelierele CFR Grivita has no effect on the direction of Teraplast Bist i.e., Teraplast Bist and Atelierele CFR go up and down completely randomly.
Pair Corralation between Teraplast Bist and Atelierele CFR
Assuming the 90 days trading horizon Teraplast Bist is expected to under-perform the Atelierele CFR. But the stock apears to be less risky and, when comparing its historical volatility, Teraplast Bist is 1.46 times less risky than Atelierele CFR. The stock trades about -0.14 of its potential returns per unit of risk. The Atelierele CFR Grivita is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,300 in Atelierele CFR Grivita on September 1, 2024 and sell it today you would lose (500.00) from holding Atelierele CFR Grivita or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Teraplast Bist vs. Atelierele CFR Grivita
Performance |
| Timeline |
| Teraplast Bist |
| Atelierele CFR Grivita |
Teraplast Bist and Atelierele CFR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teraplast Bist and Atelierele CFR
The main advantage of trading using opposite Teraplast Bist and Atelierele CFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teraplast Bist position performs unexpectedly, Atelierele CFR 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 Atelierele CFR will offset losses from the drop in Atelierele CFR's long position.| Teraplast Bist vs. Electroarges S | Teraplast Bist vs. Comvex SA | Teraplast Bist vs. Feper SA | Teraplast Bist vs. Uzuc SA |
| Atelierele CFR vs. TRANSILVANIA INVESTMENTS ALLIANCE | Atelierele CFR vs. Erste Group Bank | Atelierele CFR vs. Infinity Capital Investments | Atelierele CFR vs. Safetech Innovations 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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