Correlation Between Remarul 16 and LACTATE NATURA

Can any of the company-specific risk be diversified away by investing in both Remarul 16 and LACTATE NATURA 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 Remarul 16 and LACTATE NATURA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Remarul 16 Februarie and LACTATE NATURA SA, you can compare the effects of market volatilities on Remarul 16 and LACTATE NATURA 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 Remarul 16 with a short position of LACTATE NATURA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remarul 16 and LACTATE NATURA.

Diversification Opportunities for Remarul 16 and LACTATE NATURA

0.0

Correlation Coefficient

Remarul 16  LACTATE NATURA

Pay attention - limited upside

The 3 months correlation between Remarul and LACTATE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Remarul 16 Februarie and LACTATE NATURA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LACTATE NATURA SA and Remarul 16 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 Remarul 16 Februarie are associated (or correlated) with LACTATE NATURA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LACTATE NATURA SA has no effect on the direction of Remarul 16 i.e., Remarul 16 and LACTATE NATURA go up and down completely randomly.

Pair Corralation between Remarul 16 and LACTATE NATURA

If you would invest  2,000  in Remarul 16 Februarie on October 10, 2024 and sell it today you would earn a total of  560.00  from holding Remarul 16 Februarie or generate 28.0% return on investment over 90 days.

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

Remarul 16 Februarie  vs.  LACTATE NATURA SA

Remarul 16 Februarie

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Remarul 16 Februarie has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

LACTATE NATURA SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Remarul 16 and LACTATE NATURA

The main advantage of trading using opposite Remarul 16 and LACTATE NATURA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remarul 16 position performs unexpectedly, LACTATE NATURA 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 LACTATE NATURA will offset losses from the drop in LACTATE NATURA's long position.

The idea behind Remarul 16 Februarie and LACTATE NATURA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.