Correlation Between Waga Energy and Maat Pharma
Can any of the company-specific risk be diversified away by investing in both Waga Energy and Maat Pharma 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 Waga Energy and Maat Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waga Energy SA and Maat Pharma SA, you can compare the effects of market volatilities on Waga Energy and Maat Pharma 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 Waga Energy with a short position of Maat Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waga Energy and Maat Pharma.
Diversification Opportunities for Waga Energy and Maat Pharma
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Waga and Maat is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Waga Energy SA and Maat Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maat Pharma SA and Waga Energy 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 Waga Energy SA are associated (or correlated) with Maat Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maat Pharma SA has no effect on the direction of Waga Energy i.e., Waga Energy and Maat Pharma go up and down completely randomly.
Pair Corralation between Waga Energy and Maat Pharma
Assuming the 90 days trading horizon Waga Energy SA is expected to under-perform the Maat Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Waga Energy SA is 1.04 times less risky than Maat Pharma. The stock trades about -0.03 of its potential returns per unit of risk. The Maat Pharma SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Maat Pharma SA on November 2, 2024 and sell it today you would lose (76.00) from holding Maat Pharma SA or give up 8.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waga Energy SA vs. Maat Pharma SA
Performance |
| Timeline |
| Waga Energy SA |
| Maat Pharma SA |
Waga Energy and Maat Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waga Energy and Maat Pharma
The main advantage of trading using opposite Waga Energy and Maat Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waga Energy position performs unexpectedly, Maat Pharma 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 Maat Pharma will offset losses from the drop in Maat Pharma's long position.| Waga Energy vs. OVH Groupe SAS | Waga Energy vs. Hydrogene De France | Waga Energy vs. Neoen SA | Waga Energy vs. Haffner Energy SA |
| Maat Pharma vs. OSE Pharma SA | Maat Pharma vs. Abivax SA | Maat Pharma vs. Acticor Biotech SAS | Maat Pharma vs. Waga Energy 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.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |