Correlation Between Augros Cosmetic and Quadpack Industries

Can any of the company-specific risk be diversified away by investing in both Augros Cosmetic and Quadpack Industries 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 Augros Cosmetic and Quadpack Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Augros Cosmetic Packaging and Quadpack Industries SA, you can compare the effects of market volatilities on Augros Cosmetic and Quadpack Industries 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 Augros Cosmetic with a short position of Quadpack Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Augros Cosmetic and Quadpack Industries.

Diversification Opportunities for Augros Cosmetic and Quadpack Industries

0.0

Correlation Coefficient

Augros Cosmetic  Quadpack Industries

Pay attention - limited upside

The 3 months correlation between Augros and Quadpack is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Augros Cosmetic Packaging and Quadpack Industries SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quadpack Industries and Augros Cosmetic 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 Augros Cosmetic Packaging are associated (or correlated) with Quadpack Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quadpack Industries has no effect on the direction of Augros Cosmetic i.e., Augros Cosmetic and Quadpack Industries go up and down completely randomly.

Pair Corralation between Augros Cosmetic and Quadpack Industries

If you would invest  488.00  in Augros Cosmetic Packaging on September 16, 2024 and sell it today you would earn a total of  232.00  from holding Augros Cosmetic Packaging or generate 47.54% return on investment over 90 days.

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

Augros Cosmetic Packaging  vs.  Quadpack Industries SA

Augros Cosmetic Packaging

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Augros Cosmetic Packaging are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Augros Cosmetic sustained solid returns over the last few months and may actually be approaching a breakup point.

Quadpack Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quadpack Industries SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Quadpack Industries is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Augros Cosmetic and Quadpack Industries

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

The idea behind Augros Cosmetic Packaging and Quadpack Industries 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 Stocks Directory module to find actively traded stocks across global markets.