Correlation Between Artego Tg and Aages SA
Can any of the company-specific risk be diversified away by investing in both Artego Tg and Aages 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 Artego Tg and Aages SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artego Tg Jiu and Aages SA, you can compare the effects of market volatilities on Artego Tg and Aages 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 Artego Tg with a short position of Aages SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artego Tg and Aages SA.
Diversification Opportunities for Artego Tg and Aages SA
Very weak diversification
The 3 months correlation between Artego and Aages is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Artego Tg Jiu and Aages SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aages SA and Artego Tg 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 Artego Tg Jiu are associated (or correlated) with Aages SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aages SA has no effect on the direction of Artego Tg i.e., Artego Tg and Aages SA go up and down completely randomly.
Pair Corralation between Artego Tg and Aages SA
Assuming the 90 days trading horizon Artego Tg Jiu is expected to under-perform the Aages SA. In addition to that, Artego Tg is 1.86 times more volatile than Aages SA. It trades about -0.01 of its total potential returns per unit of risk. Aages SA is currently generating about 0.04 per unit of volatility. If you would invest 660.00 in Aages SA on December 2, 2024 and sell it today you would earn a total of 20.00 from holding Aages SA or generate 3.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Artego Tg Jiu vs. Aages SA
Performance |
Timeline |
Artego Tg Jiu |
Aages SA |
Artego Tg and Aages SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Artego Tg and Aages SA
The main advantage of trading using opposite Artego Tg and Aages SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artego Tg position performs unexpectedly, Aages 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 Aages SA will offset losses from the drop in Aages SA's long position.Artego Tg vs. Evergent Investments SA | Artego Tg vs. TRANSILVANIA INVESTMENTS ALLIANCE | Artego Tg vs. Digi Communications NV | Artego Tg vs. Infinity Capital Investments |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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