Correlation Between Becle SAB and Regional SAB

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

By analyzing existing cross correlation between Becle SAB de and Regional SAB de, you can compare the effects of market volatilities on Becle SAB and Regional SAB 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 Becle SAB with a short position of Regional SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becle SAB and Regional SAB.

Diversification Opportunities for Becle SAB and Regional SAB

-0.84

Correlation Coefficient

Becle SAB  Regional SAB

Pay attention - limited upside

The 3 months correlation between Becle and Regional is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Becle SAB de and Regional SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional SAB de and Becle SAB 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 Becle SAB de are associated (or correlated) with Regional SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional SAB de has no effect on the direction of Becle SAB i.e., Becle SAB and Regional SAB go up and down completely randomly.

Pair Corralation between Becle SAB and Regional SAB

Assuming the 90 days trading horizon Becle SAB de is expected to under-perform the Regional SAB. In addition to that, Becle SAB is 1.33 times more volatile than Regional SAB de. It trades about -0.16 of its total potential returns per unit of risk. Regional SAB de is currently generating about 0.11 per unit of volatility. If you would invest  11,957  in Regional SAB de on December 23, 2024 and sell it today you would earn a total of  1,762  from holding Regional SAB de or generate 14.74% return on investment over 90 days.

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

Becle SAB de  vs.  Regional SAB de

Becle SAB de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Becle SAB de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Regional SAB de

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Regional SAB de are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating primary indicators, Regional SAB showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Becle SAB and Regional SAB

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

The idea behind Becle SAB de and Regional SAB de 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.