Correlation Between AROBS TRANSILVANIA and Bermas SA

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

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

Diversification Opportunities for AROBS TRANSILVANIA and Bermas SA

0.43

Correlation Coefficient

AROBS TRANSILVANIA  Bermas SA

Very weak diversification

The 3 months correlation between AROBS and Bermas is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AROBS TRANSILVANIA SOFTWARE and Bermas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bermas SA and AROBS TRANSILVANIA 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 AROBS TRANSILVANIA SOFTWARE are associated (or correlated) with Bermas SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bermas SA has no effect on the direction of AROBS TRANSILVANIA i.e., AROBS TRANSILVANIA and Bermas SA go up and down completely randomly.

Pair Corralation between AROBS TRANSILVANIA and Bermas SA

Assuming the 90 days trading horizon AROBS TRANSILVANIA SOFTWARE is expected to generate 0.51 times more return on investment than Bermas SA. However, AROBS TRANSILVANIA SOFTWARE is 1.98 times less risky than Bermas SA. It trades about -0.19 of its potential returns per unit of risk. Bermas SA is currently generating about -0.11 per unit of risk. If you would invest  78.00  in AROBS TRANSILVANIA SOFTWARE on December 30, 2024 and sell it today you would lose (13.00) from holding AROBS TRANSILVANIA SOFTWARE or give up 16.67% of portfolio value over 90 days.

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

AROBS TRANSILVANIA SOFTWARE  vs.  Bermas SA

AROBS TRANSILVANIA

Risk-Adjusted Performance

Very Weak

Over the last 90 days AROBS TRANSILVANIA SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Bermas SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bermas SA 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 primary indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with AROBS TRANSILVANIA and Bermas SA

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

The idea behind AROBS TRANSILVANIA SOFTWARE and Bermas 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 Transaction History module to view history of all your transactions and understand their impact on performance.