Correlation Between Teraplast Bist and Feper SA
Can any of the company-specific risk be diversified away by investing in both Teraplast Bist and Feper 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 Teraplast Bist and Feper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teraplast Bist and Feper SA, you can compare the effects of market volatilities on Teraplast Bist and Feper 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 Teraplast Bist with a short position of Feper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teraplast Bist and Feper SA.
Diversification Opportunities for Teraplast Bist and Feper SA
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Teraplast and Feper is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Teraplast Bist and Feper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feper SA 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 Feper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feper SA has no effect on the direction of Teraplast Bist i.e., Teraplast Bist and Feper SA go up and down completely randomly.
Pair Corralation between Teraplast Bist and Feper SA
Assuming the 90 days trading horizon Teraplast Bist is expected to under-perform the Feper SA. But the stock apears to be less risky and, when comparing its historical volatility, Teraplast Bist is 3.26 times less risky than Feper SA. The stock trades about -0.03 of its potential returns per unit of risk. The Feper SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6.36 in Feper SA on August 28, 2024 and sell it today you would earn a total of 12.64 from holding Feper SA or generate 198.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Teraplast Bist vs. Feper SA
Performance |
| Timeline |
| Teraplast Bist |
| Feper SA |
Teraplast Bist and Feper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teraplast Bist and Feper SA
The main advantage of trading using opposite Teraplast Bist and Feper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teraplast Bist position performs unexpectedly, Feper 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 Feper SA will offset losses from the drop in Feper SA's long position.| Teraplast Bist vs. AROBS TRANSILVANIA SOFTWARE | Teraplast Bist vs. Compania Hoteliera InterContinental | Teraplast Bist vs. Infinity Capital Investments | Teraplast Bist vs. Digi Communications NV |
| Feper SA vs. TRANSILVANIA INVESTMENTS ALLIANCE | Feper SA vs. IM Vinaria Purcari | Feper SA vs. Patria Bank SA | Feper SA vs. Digi Communications NV |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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