Correlation Between AES and EVN AG

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AES and EVN AG 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 AES and EVN AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The AES and EVN AG, you can compare the effects of market volatilities on AES and EVN AG 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 AES with a short position of EVN AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of AES and EVN AG.

Diversification Opportunities for AES and EVN AG

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between AES and EVN is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding The AES and EVN AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVN AG and AES 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 The AES are associated (or correlated) with EVN AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVN AG has no effect on the direction of AES i.e., AES and EVN AG go up and down completely randomly.

Pair Corralation between AES and EVN AG

Assuming the 90 days horizon The AES is expected to under-perform the EVN AG. In addition to that, AES is 1.21 times more volatile than EVN AG. It trades about -0.01 of its total potential returns per unit of risk. EVN AG is currently generating about 0.04 per unit of volatility. If you would invest  2,109  in EVN AG on January 25, 2024 and sell it today you would earn a total of  596.00  from holding EVN AG or generate 28.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

The AES  vs.  EVN AG

 Performance 
       Timeline  
AES 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in The AES are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AES is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
EVN AG 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in EVN AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, EVN AG may actually be approaching a critical reversion point that can send shares even higher in May 2024.

AES and EVN AG Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AES and EVN AG

The main advantage of trading using opposite AES and EVN AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AES position performs unexpectedly, EVN AG 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 EVN AG will offset losses from the drop in EVN AG's long position.
The idea behind The AES and EVN AG 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.
Check out your portfolio center.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume