Correlation Between Atc Venture and Continental Aktiengesellscha

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

By analyzing existing cross correlation between Atc Venture Grp and Continental Aktiengesellschaft, you can compare the effects of market volatilities on Atc Venture and Continental Aktiengesellscha 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 Atc Venture with a short position of Continental Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atc Venture and Continental Aktiengesellscha.

Diversification Opportunities for Atc Venture and Continental Aktiengesellscha

-0.29

Correlation Coefficient

Atc Venture  Continental Aktiengesellscha

Very good diversification

The 3 months correlation between Atc and Continental is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Atc Venture Grp and Continental Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Aktiengesellscha and Atc Venture 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 Atc Venture Grp are associated (or correlated) with Continental Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Aktiengesellscha has no effect on the direction of Atc Venture i.e., Atc Venture and Continental Aktiengesellscha go up and down completely randomly.

Pair Corralation between Atc Venture and Continental Aktiengesellscha

If you would invest  6,640  in Continental Aktiengesellschaft on December 21, 2024 and sell it today you would earn a total of  1,282  from holding Continental Aktiengesellschaft or generate 19.31% return on investment over 90 days.

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

Atc Venture Grp  vs.  Continental Aktiengesellschaft

Atc Venture Grp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atc Venture Grp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Atc Venture is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Continental Aktiengesellscha

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Continental Aktiengesellschaft are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Continental Aktiengesellscha reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atc Venture and Continental Aktiengesellscha

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

The idea behind Atc Venture Grp and Continental Aktiengesellschaft 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.