Correlation Between TRANSILVANIA LEASING and Promateris
Can any of the company-specific risk be diversified away by investing in both TRANSILVANIA LEASING and Promateris 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 TRANSILVANIA LEASING and Promateris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRANSILVANIA LEASING SI and Promateris SA, you can compare the effects of market volatilities on TRANSILVANIA LEASING and Promateris 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 TRANSILVANIA LEASING with a short position of Promateris. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSILVANIA LEASING and Promateris.
Diversification Opportunities for TRANSILVANIA LEASING and Promateris
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between TRANSILVANIA and Promateris is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding TRANSILVANIA LEASING SI and Promateris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promateris SA and TRANSILVANIA LEASING 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 TRANSILVANIA LEASING SI are associated (or correlated) with Promateris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promateris SA has no effect on the direction of TRANSILVANIA LEASING i.e., TRANSILVANIA LEASING and Promateris go up and down completely randomly.
Pair Corralation between TRANSILVANIA LEASING and Promateris
Assuming the 90 days trading horizon TRANSILVANIA LEASING SI is expected to generate 1.18 times more return on investment than Promateris. However, TRANSILVANIA LEASING is 1.18 times more volatile than Promateris SA. It trades about 0.06 of its potential returns per unit of risk. Promateris SA is currently generating about -0.03 per unit of risk. If you would invest 4.21 in TRANSILVANIA LEASING SI on November 27, 2024 and sell it today you would earn a total of 4.99 from holding TRANSILVANIA LEASING SI or generate 118.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.8% |
| Values | Daily Returns |
TRANSILVANIA LEASING SI vs. Promateris SA
Performance |
| Timeline |
| TRANSILVANIA LEASING |
| Promateris SA |
TRANSILVANIA LEASING and Promateris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSILVANIA LEASING and Promateris
The main advantage of trading using opposite TRANSILVANIA LEASING and Promateris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSILVANIA LEASING position performs unexpectedly, Promateris 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 Promateris will offset losses from the drop in Promateris' long position.| TRANSILVANIA LEASING vs. AROBS TRANSILVANIA SOFTWARE | TRANSILVANIA LEASING vs. Digi Communications NV | TRANSILVANIA LEASING vs. Evergent Investments SA | TRANSILVANIA LEASING vs. Erste Group Bank |
| Promateris vs. TRANSILVANIA LEASING SI | Promateris vs. Digi Communications NV | Promateris vs. IHUNT TECHNOLOGY IMPORT EXPORT | Promateris vs. Biofarm Bucure |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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