Correlation Between Dalekovod and Atlantic Grupa

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

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

Diversification Opportunities for Dalekovod and Atlantic Grupa

-0.67

Correlation Coefficient

Dalekovod  Atlantic Grupa

Excellent diversification

The 3 months correlation between Dalekovod and Atlantic is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dalekovod dd and Atlantic Grupa dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Grupa dd and Dalekovod 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 Dalekovod dd are associated (or correlated) with Atlantic Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Grupa dd has no effect on the direction of Dalekovod i.e., Dalekovod and Atlantic Grupa go up and down completely randomly.

Pair Corralation between Dalekovod and Atlantic Grupa

Assuming the 90 days trading horizon Dalekovod dd is expected to generate 2.24 times more return on investment than Atlantic Grupa. However, Dalekovod is 2.24 times more volatile than Atlantic Grupa dd. It trades about 0.15 of its potential returns per unit of risk. Atlantic Grupa dd is currently generating about -0.09 per unit of risk. If you would invest  348.00  in Dalekovod dd on December 1, 2024 and sell it today you would earn a total of  84.00  from holding Dalekovod dd or generate 24.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	89.83%
Values	Daily Returns

Dalekovod dd  vs.  Atlantic Grupa dd

Dalekovod dd

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dalekovod dd are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Dalekovod unveiled solid returns over the last few months and may actually be approaching a breakup point.

Atlantic Grupa dd

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlantic Grupa dd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Dalekovod and Atlantic Grupa

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

The idea behind Dalekovod dd and Atlantic Grupa dd 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..