Correlation Between Elaia Investment and Asturiana
Can any of the company-specific risk be diversified away by investing in both Elaia Investment and Asturiana 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 Elaia Investment and Asturiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elaia Investment Spain and Asturiana de Laminados, you can compare the effects of market volatilities on Elaia Investment and Asturiana 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 Elaia Investment with a short position of Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elaia Investment and Asturiana.
Diversification Opportunities for Elaia Investment and Asturiana
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elaia and Asturiana is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Elaia Investment Spain and Asturiana de Laminados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asturiana de Laminados and Elaia Investment 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 Elaia Investment Spain are associated (or correlated) with Asturiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asturiana de Laminados has no effect on the direction of Elaia Investment i.e., Elaia Investment and Asturiana go up and down completely randomly.
Pair Corralation between Elaia Investment and Asturiana
Assuming the 90 days trading horizon Elaia Investment Spain is expected to under-perform the Asturiana. But the stock apears to be less risky and, when comparing its historical volatility, Elaia Investment Spain is 2.44 times less risky than Asturiana. The stock trades about -0.07 of its potential returns per unit of risk. The Asturiana de Laminados is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Asturiana de Laminados on December 4, 2024 and sell it today you would lose (9.00) from holding Asturiana de Laminados or give up 40.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 36.18% |
| Values | Daily Returns |
Elaia Investment Spain vs. Asturiana de Laminados
Performance |
| Timeline |
| Elaia Investment Spain |
| Asturiana de Laminados |
Elaia Investment and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elaia Investment and Asturiana
The main advantage of trading using opposite Elaia Investment and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elaia Investment position performs unexpectedly, Asturiana 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 Asturiana will offset losses from the drop in Asturiana's long position.| Elaia Investment vs. International Consolidated Airlines | Elaia Investment vs. Home Capital Rentals | Elaia Investment vs. Techo Hogar SOCIMI, | Elaia Investment vs. Melia Hotels |
| Asturiana vs. Tubos Reunidos SA | Asturiana vs. Indra A | Asturiana vs. Metrovacesa SA | Asturiana vs. Elecnor 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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