Correlation Between Trajano Iberia and Amper SA

Can any of the company-specific risk be diversified away by investing in both Trajano Iberia and Amper SA 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 Trajano Iberia and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Trajano Iberia Socimi and Amper SA, you can compare the effects of market volatilities on Trajano Iberia and Amper SA 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 Trajano Iberia with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trajano Iberia and Amper SA.

Diversification Opportunities for Trajano Iberia and Amper SA

-0.46

Correlation Coefficient

Trajano Iberia  Amper SA

Very good diversification

The 3 months correlation between Trajano and Amper is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Trajano Iberia Socimi and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Trajano Iberia 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 Trajano Iberia Socimi are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Trajano Iberia i.e., Trajano Iberia and Amper SA go up and down completely randomly.

Pair Corralation between Trajano Iberia and Amper SA

Assuming the 90 days trading horizon Trajano Iberia Socimi is expected to generate 4.88 times more return on investment than Amper SA. However, Trajano Iberia is 4.88 times more volatile than Amper SA. It trades about 0.08 of its potential returns per unit of risk. Amper SA is currently generating about 0.13 per unit of risk. If you would invest  444.00  in Trajano Iberia Socimi on December 30, 2024 and sell it today you would lose (116.00) from holding Trajano Iberia Socimi or give up 26.13% of portfolio value over 90 days.

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

Trajano Iberia Socimi  vs.  Amper SA

Trajano Iberia Socimi

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Trajano Iberia Socimi are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Trajano Iberia exhibited solid returns over the last few months and may actually be approaching a breakup point.

Amper SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amper SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Amper SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trajano Iberia and Amper SA

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

The idea behind Trajano Iberia Socimi and Amper 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.