Correlation Between Cerberus Cyber and Avance Gas

Can any of the company-specific risk be diversified away by investing in both Cerberus Cyber and Avance Gas 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 Cerberus Cyber and Avance Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cerberus Cyber Sentinel and Avance Gas Holding, you can compare the effects of market volatilities on Cerberus Cyber and Avance Gas 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 Cerberus Cyber with a short position of Avance Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerberus Cyber and Avance Gas.

Diversification Opportunities for Cerberus Cyber and Avance Gas

-0.68

Correlation Coefficient

Cerberus Cyber  Avance Gas

Excellent diversification

The 3 months correlation between Cerberus and Avance is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cerberus Cyber Sentinel and Avance Gas Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avance Gas Holding and Cerberus Cyber 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 Cerberus Cyber Sentinel are associated (or correlated) with Avance Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avance Gas Holding has no effect on the direction of Cerberus Cyber i.e., Cerberus Cyber and Avance Gas go up and down completely randomly.

Pair Corralation between Cerberus Cyber and Avance Gas

Given the investment horizon of 90 days Cerberus Cyber Sentinel is expected to generate 1.34 times more return on investment than Avance Gas. However, Cerberus Cyber is 1.34 times more volatile than Avance Gas Holding. It trades about 0.31 of its potential returns per unit of risk. Avance Gas Holding is currently generating about -0.13 per unit of risk. If you would invest  134.00  in Cerberus Cyber Sentinel on September 28, 2024 and sell it today you would earn a total of  115.00  from holding Cerberus Cyber Sentinel or generate 85.82% return on investment over 90 days.

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

Cerberus Cyber Sentinel  vs.  Avance Gas Holding

Cerberus Cyber Sentinel

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cerberus Cyber Sentinel are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Cerberus Cyber displayed solid returns over the last few months and may actually be approaching a breakup point.

Avance Gas Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avance Gas Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Cerberus Cyber and Avance Gas

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

The idea behind Cerberus Cyber Sentinel and Avance Gas Holding 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 CEOs Directory module to screen CEOs from public companies around the world.