Correlation Between Remarul 16 and Fondul Deschis

Can any of the company-specific risk be diversified away by investing in both Remarul 16 and Fondul Deschis 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 Fondul Deschis 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 Fondul Deschis De, you can compare the effects of market volatilities on Remarul 16 and Fondul Deschis 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 Fondul Deschis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remarul 16 and Fondul Deschis.

Diversification Opportunities for Remarul 16 and Fondul Deschis

0.39

Correlation Coefficient

Remarul 16  Fondul Deschis

Weak diversification

The 3 months correlation between Remarul and Fondul is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Remarul 16 Februarie and Fondul Deschis De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fondul Deschis De 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 Fondul Deschis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fondul Deschis De has no effect on the direction of Remarul 16 i.e., Remarul 16 and Fondul Deschis go up and down completely randomly.

Pair Corralation between Remarul 16 and Fondul Deschis

Assuming the 90 days trading horizon Remarul 16 Februarie is expected to under-perform the Fondul Deschis. But the stock apears to be less risky and, when comparing its historical volatility, Remarul 16 Februarie is 1.59 times less risky than Fondul Deschis. The stock trades about -0.14 of its potential returns per unit of risk. The Fondul Deschis De is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  2,800  in Fondul Deschis De on September 26, 2024 and sell it today you would lose (113.00) from holding Fondul Deschis De or give up 4.04% of portfolio value over 90 days.

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

Remarul 16 Februarie  vs.  Fondul Deschis De

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.

Fondul Deschis De

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fondul Deschis De has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fondul Deschis is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Remarul 16 and Fondul Deschis

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

The idea behind Remarul 16 Februarie and Fondul Deschis De 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.