Correlation Between Continental Aktiengesellscha and Atc Venture

Can any of the company-specific risk be diversified away by investing in both Continental Aktiengesellscha and Atc Venture 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 Continental Aktiengesellscha and Atc Venture into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Continental Aktiengesellschaft and Atc Venture Grp, you can compare the effects of market volatilities on Continental Aktiengesellscha and Atc Venture 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 Continental Aktiengesellscha with a short position of Atc Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Aktiengesellscha and Atc Venture.

Diversification Opportunities for Continental Aktiengesellscha and Atc Venture

0.0

Correlation Coefficient

Continental Aktiengesellscha  Atc Venture

Pay attention - limited upside

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

Pair Corralation between Continental Aktiengesellscha and Atc Venture

Assuming the 90 days horizon Continental Aktiengesellscha is expected to generate 413.31 times less return on investment than Atc Venture. But when comparing it to its historical volatility, Continental Aktiengesellschaft is 18.99 times less risky than Atc Venture. It trades about 0.0 of its potential returns per unit of risk. Atc Venture Grp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Atc Venture Grp on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Atc Venture Grp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Continental Aktiengesellschaft  vs.  Atc Venture Grp

Continental Aktiengesellscha

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Continental Aktiengesellschaft are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Continental Aktiengesellscha may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Atc Venture Grp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atc Venture Grp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Atc Venture is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Continental Aktiengesellscha and Atc Venture

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

The idea behind Continental Aktiengesellschaft and Atc Venture Grp 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 Commodity Directory module to find actively traded commodities issued by global exchanges.