Correlation Between Aages SA and Ssif Broker

Can any of the company-specific risk be diversified away by investing in both Aages SA and Ssif Broker 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 Aages SA and Ssif Broker into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aages SA and Ssif Broker Cl, you can compare the effects of market volatilities on Aages SA and Ssif Broker 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 Aages SA with a short position of Ssif Broker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aages SA and Ssif Broker.

Diversification Opportunities for Aages SA and Ssif Broker

0.87

Correlation Coefficient

Aages SA  Ssif Broker

Very poor diversification

The 3 months correlation between Aages and Ssif is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aages SA and Ssif Broker Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssif Broker Cl and Aages SA 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 Aages SA are associated (or correlated) with Ssif Broker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssif Broker Cl has no effect on the direction of Aages SA i.e., Aages SA and Ssif Broker go up and down completely randomly.

Pair Corralation between Aages SA and Ssif Broker

Assuming the 90 days trading horizon Aages SA is expected to generate 0.64 times more return on investment than Ssif Broker. However, Aages SA is 1.56 times less risky than Ssif Broker. It trades about -0.1 of its potential returns per unit of risk. Ssif Broker Cl is currently generating about -0.21 per unit of risk. If you would invest  675.00  in Aages SA on September 27, 2024 and sell it today you would lose (40.00) from holding Aages SA or give up 5.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Aages SA  vs.  Ssif Broker Cl

Aages SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aages SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Ssif Broker Cl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ssif Broker Cl has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward-looking signals remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Aages SA and Ssif Broker

The main advantage of trading using opposite Aages SA and Ssif Broker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aages SA position performs unexpectedly, Ssif Broker 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 Ssif Broker will offset losses from the drop in Ssif Broker's long position.

The idea behind Aages SA and Ssif Broker Cl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.