Correlation Between Atlantic Grupa and INA Industrija

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

By analyzing existing cross correlation between Atlantic Grupa dd and INA Industrija Nafte dd, you can compare the effects of market volatilities on Atlantic Grupa and INA Industrija 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 Atlantic Grupa with a short position of INA Industrija. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Grupa and INA Industrija.

Diversification Opportunities for Atlantic Grupa and INA Industrija

-0.64

Correlation Coefficient

Atlantic Grupa  INA Industrija

Excellent diversification

The 3 months correlation between Atlantic and INA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Grupa dd and INA Industrija Nafte dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INA Industrija Nafte and Atlantic Grupa 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 Atlantic Grupa dd are associated (or correlated) with INA Industrija. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INA Industrija Nafte has no effect on the direction of Atlantic Grupa i.e., Atlantic Grupa and INA Industrija go up and down completely randomly.

Pair Corralation between Atlantic Grupa and INA Industrija

Assuming the 90 days trading horizon Atlantic Grupa dd is expected to generate 0.49 times more return on investment than INA Industrija. However, Atlantic Grupa dd is 2.04 times less risky than INA Industrija. It trades about 0.02 of its potential returns per unit of risk. INA Industrija Nafte dd is currently generating about 0.0 per unit of risk. If you would invest  5,050  in Atlantic Grupa dd on September 13, 2024 and sell it today you would earn a total of  50.00  from holding Atlantic Grupa dd or generate 0.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	48.15%
Values	Daily Returns

Atlantic Grupa dd  vs.  INA Industrija Nafte dd

Atlantic Grupa dd

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atlantic Grupa dd are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Atlantic Grupa is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

INA Industrija Nafte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INA Industrija Nafte dd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, INA Industrija is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Atlantic Grupa and INA Industrija

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

The idea behind Atlantic Grupa dd and INA Industrija Nafte dd 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.