Correlation Between Compa Sibiu and Remarul 16

Can any of the company-specific risk be diversified away by investing in both Compa Sibiu and Remarul 16 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 Compa Sibiu and Remarul 16 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Compa Sibiu and Remarul 16 Februarie, you can compare the effects of market volatilities on Compa Sibiu and Remarul 16 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 Compa Sibiu with a short position of Remarul 16. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compa Sibiu and Remarul 16.

Diversification Opportunities for Compa Sibiu and Remarul 16

0.0

Correlation Coefficient

Compa Sibiu  Remarul 16

Pay attention - limited upside

The 3 months correlation between Compa and Remarul is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compa Sibiu and Remarul 16 Februarie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remarul 16 Februarie and Compa Sibiu 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 Compa Sibiu are associated (or correlated) with Remarul 16. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remarul 16 Februarie has no effect on the direction of Compa Sibiu i.e., Compa Sibiu and Remarul 16 go up and down completely randomly.

Pair Corralation between Compa Sibiu and Remarul 16

If you would invest (100.00) in Compa Sibiu on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Compa Sibiu or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Compa Sibiu  vs.  Remarul 16 Februarie

Compa Sibiu

Risk-Adjusted Performance

Very Weak

Over the last 90 days Compa Sibiu has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Compa Sibiu is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Remarul 16 Februarie

Risk-Adjusted Performance

Very Weak

Over the last 90 days Remarul 16 Februarie has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Remarul 16 is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Compa Sibiu and Remarul 16

The main advantage of trading using opposite Compa Sibiu and Remarul 16 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compa Sibiu position performs unexpectedly, Remarul 16 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 Remarul 16 will offset losses from the drop in Remarul 16's long position.

The idea behind Compa Sibiu and Remarul 16 Februarie 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.