Correlation Between Santierul Naval and Remarul 16

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

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

Diversification Opportunities for Santierul Naval and Remarul 16

-0.21

Correlation Coefficient

Santierul Naval  Remarul 16

Very good diversification

The 3 months correlation between Santierul and Remarul is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Santierul Naval Orsova and Remarul 16 Februarie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remarul 16 Februarie and Santierul Naval 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 Santierul Naval Orsova are associated (or correlated) with Remarul 16. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remarul 16 Februarie has no effect on the direction of Santierul Naval i.e., Santierul Naval and Remarul 16 go up and down completely randomly.

Pair Corralation between Santierul Naval and Remarul 16

Assuming the 90 days trading horizon Santierul Naval Orsova is expected to generate 3.11 times more return on investment than Remarul 16. However, Santierul Naval is 3.11 times more volatile than Remarul 16 Februarie. It trades about 0.07 of its potential returns per unit of risk. Remarul 16 Februarie is currently generating about -0.12 per unit of risk. If you would invest  605.00  in Santierul Naval Orsova on September 27, 2024 and sell it today you would earn a total of  110.00  from holding Santierul Naval Orsova or generate 18.18% return on investment over 90 days.

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

Santierul Naval Orsova  vs.  Remarul 16 Februarie

Santierul Naval Orsova

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Santierul Naval Orsova are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Santierul Naval may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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.

Pair Trading with Santierul Naval and Remarul 16

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

The idea behind Santierul Naval Orsova and Remarul 16 Februarie 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.