Correlation Between Atesco Industrial and Construction JSC

Can any of the company-specific risk be diversified away by investing in both Atesco Industrial and Construction JSC 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 Atesco Industrial and Construction JSC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atesco Industrial Cartering and Construction JSC No5, you can compare the effects of market volatilities on Atesco Industrial and Construction JSC 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 Atesco Industrial with a short position of Construction JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and Construction JSC.

Diversification Opportunities for Atesco Industrial and Construction JSC

-0.58

Correlation Coefficient

Atesco Industrial  Construction JSC

Excellent diversification

The 3 months correlation between Atesco and Construction is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and Construction JSC No5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Construction JSC No5 and Atesco Industrial 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 Atesco Industrial Cartering are associated (or correlated) with Construction JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Construction JSC No5 has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and Construction JSC go up and down completely randomly.

Pair Corralation between Atesco Industrial and Construction JSC

Assuming the 90 days trading horizon Atesco Industrial Cartering is expected to under-perform the Construction JSC. In addition to that, Atesco Industrial is 1.42 times more volatile than Construction JSC No5. It trades about -0.06 of its total potential returns per unit of risk. Construction JSC No5 is currently generating about 0.11 per unit of volatility. If you would invest  1,700,000  in Construction JSC No5 on September 12, 2024 and sell it today you would earn a total of  300,000  from holding Construction JSC No5 or generate 17.65% return on investment over 90 days.

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

Atesco Industrial Cartering  vs.  Construction JSC No5

Atesco Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atesco Industrial Cartering 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 basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Construction JSC No5

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Construction JSC No5 are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Construction JSC displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atesco Industrial and Construction JSC

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

The idea behind Atesco Industrial Cartering and Construction JSC No5 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..