Correlation Between ACS Actividades and Aenza SAA

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

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

Diversification Opportunities for ACS Actividades and Aenza SAA

0.01

Correlation Coefficient

ACS Actividades  Aenza SAA

Significant diversification

The 3 months correlation between ACS and Aenza is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades De and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA and ACS Actividades 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 ACS Actividades De are associated (or correlated) with Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of ACS Actividades i.e., ACS Actividades and Aenza SAA go up and down completely randomly.

Pair Corralation between ACS Actividades and Aenza SAA

If you would invest  904.00  in ACS Actividades De on August 31, 2024 and sell it today you would earn a total of  12.00  from holding ACS Actividades De or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

ACS Actividades De  vs.  Aenza SAA

ACS Actividades De

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ACS Actividades De are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, ACS Actividades is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Aenza SAA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aenza SAA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Aenza SAA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ACS Actividades and Aenza SAA

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

The idea behind ACS Actividades De and Aenza SAA 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.