Correlation Between GRUPUL INDUSTRIAL and Iproeb SA

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

By analyzing existing cross correlation between GRUPUL INDUSTRIAL ELECTROCONTACT and Iproeb SA, you can compare the effects of market volatilities on GRUPUL INDUSTRIAL and Iproeb SA 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 GRUPUL INDUSTRIAL with a short position of Iproeb SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPUL INDUSTRIAL and Iproeb SA.

Diversification Opportunities for GRUPUL INDUSTRIAL and Iproeb SA

0.0

Correlation Coefficient

GRUPUL INDUSTRIAL  Iproeb SA

Pay attention - limited upside

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

Pair Corralation between GRUPUL INDUSTRIAL and Iproeb SA

If you would invest  4.55  in GRUPUL INDUSTRIAL ELECTROCONTACT on October 14, 2024 and sell it today you would lose (0.10) from holding GRUPUL INDUSTRIAL ELECTROCONTACT or give up 2.2% of portfolio value over 90 days.

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

GRUPUL INDUSTRIAL ELECTROCONTA  vs.  Iproeb SA

GRUPUL INDUSTRIAL

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GRUPUL INDUSTRIAL ELECTROCONTACT are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, GRUPUL INDUSTRIAL may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Iproeb SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with GRUPUL INDUSTRIAL and Iproeb SA

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

The idea behind GRUPUL INDUSTRIAL ELECTROCONTACT and Iproeb SA 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..