Correlation Between Turism Felix and Bermas SA
Can any of the company-specific risk be diversified away by investing in both Turism Felix and Bermas 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 Turism Felix and Bermas SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turism Felix B and Bermas SA, you can compare the effects of market volatilities on Turism Felix and Bermas 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 Turism Felix with a short position of Bermas SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turism Felix and Bermas SA.
Diversification Opportunities for Turism Felix and Bermas SA
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turism and Bermas is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Turism Felix B and Bermas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bermas SA and Turism Felix 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 Turism Felix B are associated (or correlated) with Bermas SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bermas SA has no effect on the direction of Turism Felix i.e., Turism Felix and Bermas SA go up and down completely randomly.
Pair Corralation between Turism Felix and Bermas SA
Assuming the 90 days trading horizon Turism Felix is expected to generate 52.66 times less return on investment than Bermas SA. In addition to that, Turism Felix is 1.4 times more volatile than Bermas SA. It trades about 0.0 of its total potential returns per unit of risk. Bermas SA is currently generating about 0.15 per unit of volatility. If you would invest 272.00 in Bermas SA on September 12, 2024 and sell it today you would earn a total of 34.00 from holding Bermas SA or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turism Felix B vs. Bermas SA
Performance |
| Timeline |
| Turism Felix B |
| Bermas SA |
Turism Felix and Bermas SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turism Felix and Bermas SA
The main advantage of trading using opposite Turism Felix and Bermas SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turism Felix position performs unexpectedly, Bermas 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 Bermas SA will offset losses from the drop in Bermas SA's long position.| Turism Felix vs. Compania Hoteliera InterContinental | Turism Felix vs. Digi Communications NV | Turism Felix vs. TRANSILVANIA LEASING SI | Turism Felix vs. Evergent Investments SA |
| Bermas SA vs. Digi Communications NV | Bermas SA vs. AROBS TRANSILVANIA SOFTWARE | Bermas SA vs. IHUNT TECHNOLOGY IMPORT EXPORT | Bermas SA vs. Compania Hoteliera InterContinental |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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