Correlation Between Aages SA and Uzinexport

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

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

Diversification Opportunities for Aages SA and Uzinexport

-0.09

Correlation Coefficient

Aages SA  Uzinexport

Good diversification

The 3 months correlation between Aages and Uzinexport is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aages SA and Uzinexport SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uzinexport SA 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 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 Aages SA i.e., Aages SA and Uzinexport go up and down completely randomly.

Pair Corralation between Aages SA and Uzinexport

Assuming the 90 days trading horizon Aages SA is expected to generate 3.55 times less return on investment than Uzinexport. But when comparing it to its historical volatility, Aages SA is 4.64 times less risky than Uzinexport. It trades about 0.19 of its potential returns per unit of risk. Uzinexport SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  50.00  in Uzinexport SA on December 4, 2024 and sell it today you would earn a total of  12.00  from holding Uzinexport SA or generate 24.0% return on investment over 90 days.

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

Aages SA  vs.  Uzinexport SA

Aages SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aages SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Aages SA is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Uzinexport SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Uzinexport SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Uzinexport displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aages SA and Uzinexport

The main advantage of trading using opposite Aages SA and Uzinexport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aages SA 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.

The idea behind Aages SA and Uzinexport SA 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.