Correlation Between IM Vinaria and Uzinexport
Can any of the company-specific risk be diversified away by investing in both IM Vinaria and Uzinexport 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 IM Vinaria and Uzinexport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IM Vinaria Purcari and Uzinexport SA, you can compare the effects of market volatilities on IM Vinaria and Uzinexport 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 IM Vinaria with a short position of Uzinexport. Check out your portfolio center. Please also check ongoing floating volatility patterns of IM Vinaria and Uzinexport.
Diversification Opportunities for IM Vinaria and Uzinexport
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WINE and Uzinexport is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding IM Vinaria Purcari and Uzinexport SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uzinexport SA and IM Vinaria 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 IM Vinaria Purcari are associated (or correlated) with Uzinexport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uzinexport SA has no effect on the direction of IM Vinaria i.e., IM Vinaria and Uzinexport go up and down completely randomly.
Pair Corralation between IM Vinaria and Uzinexport
Assuming the 90 days trading horizon IM Vinaria is expected to generate 5.45 times less return on investment than Uzinexport. But when comparing it to its historical volatility, IM Vinaria Purcari is 4.06 times less risky than Uzinexport. It trades about 0.02 of its potential returns per unit of risk. Uzinexport SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Uzinexport SA on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Uzinexport SA or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.09% |
| Values | Daily Returns |
IM Vinaria Purcari vs. Uzinexport SA
Performance |
| Timeline |
| IM Vinaria Purcari |
| Uzinexport SA |
IM Vinaria and Uzinexport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IM Vinaria and Uzinexport
The main advantage of trading using opposite IM Vinaria and Uzinexport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IM Vinaria position performs unexpectedly, Uzinexport 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 Uzinexport will offset losses from the drop in Uzinexport's long position.| IM Vinaria vs. AROBS TRANSILVANIA SOFTWARE | IM Vinaria vs. TRANSILVANIA LEASING SI | IM Vinaria vs. Safetech Innovations SA | IM Vinaria vs. Turism Hotelur |
| Uzinexport vs. Safetech Innovations SA | Uzinexport vs. Compania Hoteliera InterContinental | Uzinexport vs. Erste Group Bank | Uzinexport vs. Infinity Capital Investments |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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