Correlation Between TRANSILVANIA LEASING and Prefab Bucures

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

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

Diversification Opportunities for TRANSILVANIA LEASING and Prefab Bucures

0.0

Correlation Coefficient

TRANSILVANIA LEASING  Prefab Bucures

Pay attention - limited upside

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

Pair Corralation between TRANSILVANIA LEASING and Prefab Bucures

If you would invest (100.00) in Prefab Bucures on September 13, 2024 and sell it today you would earn a total of  100.00  from holding Prefab Bucures or generate -100.0% return on investment over 90 days.

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

TRANSILVANIA LEASING SI  vs.  Prefab Bucures

TRANSILVANIA LEASING

Risk-Adjusted Performance

0 of 100

Very Weak

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

Prefab Bucures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Prefab Bucures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Prefab Bucures is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with TRANSILVANIA LEASING and Prefab Bucures

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

The idea behind TRANSILVANIA LEASING SI and Prefab Bucures 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.