Correlation Between Bucharest BET-NG and FORMA SA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bucharest BET-NG and FORMA 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 Bucharest BET-NG and FORMA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bucharest BET-NG and FORMA SA BOTOSANI, you can compare the effects of market volatilities on Bucharest BET-NG and FORMA 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 Bucharest BET-NG with a short position of FORMA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bucharest BET-NG and FORMA SA.

Diversification Opportunities for Bucharest BET-NG and FORMA SA

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Bucharest BET-NG and FORMA SA

If you would invest  120,860  in Bucharest BET-NG on September 24, 2024 and sell it today you would lose (102.00) from holding Bucharest BET-NG or give up 0.08% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Bucharest BET-NG  vs.  FORMA SA BOTOSANI

 Performance 
       Timeline  

Bucharest BET-NG and FORMA SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bucharest BET-NG and FORMA SA

The main advantage of trading using opposite Bucharest BET-NG and FORMA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucharest BET-NG position performs unexpectedly, FORMA 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 FORMA SA will offset losses from the drop in FORMA SA's long position.
The idea behind Bucharest BET-NG and FORMA SA BOTOSANI 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance