Correlation Between Exmar NV and Atenor SA

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

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

Diversification Opportunities for Exmar NV and Atenor SA

-0.28

Correlation Coefficient

Exmar NV  Atenor SA

Very good diversification

The 3 months correlation between Exmar and Atenor is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Exmar NV and Atenor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atenor SA and Exmar NV 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 Exmar NV are associated (or correlated) with Atenor SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atenor SA has no effect on the direction of Exmar NV i.e., Exmar NV and Atenor SA go up and down completely randomly.

Pair Corralation between Exmar NV and Atenor SA

Assuming the 90 days trading horizon Exmar NV is expected to generate 3.17 times more return on investment than Atenor SA. However, Exmar NV is 3.17 times more volatile than Atenor SA. It trades about 0.28 of its potential returns per unit of risk. Atenor SA is currently generating about -0.3 per unit of risk. If you would invest  815.00  in Exmar NV on September 16, 2024 and sell it today you would earn a total of  323.00  from holding Exmar NV or generate 39.63% return on investment over 90 days.

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

Exmar NV  vs.  Atenor SA

Exmar NV

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exmar NV are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Exmar NV reported solid returns over the last few months and may actually be approaching a breakup point.

Atenor SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atenor SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Exmar NV and Atenor SA

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

The idea behind Exmar NV and Atenor 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.