Correlation Between Radcom and Elecnor,

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

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

Diversification Opportunities for Radcom and Elecnor,

0.48

Correlation Coefficient

Radcom  Elecnor,

Very weak diversification

The 3 months correlation between Radcom and Elecnor, is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and Elecnor, SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elecnor, SA and Radcom 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 Radcom are associated (or correlated) with Elecnor,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elecnor, SA has no effect on the direction of Radcom i.e., Radcom and Elecnor, go up and down completely randomly.

Pair Corralation between Radcom and Elecnor,

If you would invest  1,187  in Radcom on October 23, 2024 and sell it today you would earn a total of  221.00  from holding Radcom or generate 18.62% return on investment over 90 days.

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

Radcom  vs.  Elecnor, SA

Radcom

Risk-Adjusted Performance

11 of 100

OK

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

Elecnor, SA

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Elecnor, SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Elecnor, reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Radcom and Elecnor,

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

The idea behind Radcom and Elecnor, 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.

Check out your portfolio center.

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 Transaction History module to view history of all your transactions and understand their impact on performance.