Correlation Between Societatea Nationala and Ssif Broker

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

By analyzing existing cross correlation between Societatea Nationala de and Ssif Broker Cl, you can compare the effects of market volatilities on Societatea Nationala and Ssif Broker 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 Societatea Nationala with a short position of Ssif Broker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Societatea Nationala and Ssif Broker.

Diversification Opportunities for Societatea Nationala and Ssif Broker

0.69

Correlation Coefficient

Societatea Nationala  Ssif Broker

Poor diversification

The 3 months correlation between Societatea and Ssif is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Societatea Nationala de and Ssif Broker Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssif Broker Cl and Societatea Nationala 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 Societatea Nationala de are associated (or correlated) with Ssif Broker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssif Broker Cl has no effect on the direction of Societatea Nationala i.e., Societatea Nationala and Ssif Broker go up and down completely randomly.

Pair Corralation between Societatea Nationala and Ssif Broker

Assuming the 90 days trading horizon Societatea Nationala de is expected to under-perform the Ssif Broker. But the stock apears to be less risky and, when comparing its historical volatility, Societatea Nationala de is 1.84 times less risky than Ssif Broker. The stock trades about -0.04 of its potential returns per unit of risk. The Ssif Broker Cl is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8.18  in Ssif Broker Cl on October 7, 2024 and sell it today you would earn a total of  0.12  from holding Ssif Broker Cl or generate 1.47% return on investment over 90 days.

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

Societatea Nationala de  vs.  Ssif Broker Cl

Societatea Nationala

Risk-Adjusted Performance

0 of 100

Very Weak

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

Ssif Broker Cl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ssif Broker Cl has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward-looking signals remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Societatea Nationala and Ssif Broker

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

The idea behind Societatea Nationala de and Ssif Broker Cl 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..