Correlation Between Viohalco and Accentis
Can any of the company-specific risk be diversified away by investing in both Viohalco and Accentis 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 Viohalco and Accentis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viohalco SA and Accentis, you can compare the effects of market volatilities on Viohalco and Accentis 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 Viohalco with a short position of Accentis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viohalco and Accentis.
Diversification Opportunities for Viohalco and Accentis
Very good diversification
The 3 months correlation between Viohalco and Accentis is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Viohalco SA and Accentis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accentis and Viohalco 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 Viohalco SA are associated (or correlated) with Accentis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accentis has no effect on the direction of Viohalco i.e., Viohalco and Accentis go up and down completely randomly.
Pair Corralation between Viohalco and Accentis
Assuming the 90 days trading horizon Viohalco SA is expected to generate 0.74 times more return on investment than Accentis. However, Viohalco SA is 1.35 times less risky than Accentis. It trades about 0.23 of its potential returns per unit of risk. Accentis is currently generating about -0.01 per unit of risk. If you would invest 526.00 in Viohalco SA on February 4, 2024 and sell it today you would earn a total of 54.00 from holding Viohalco SA or generate 10.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Viohalco SA vs. Accentis
Performance |
Timeline |
Viohalco SA |
Accentis |
Viohalco and Accentis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Viohalco and Accentis
The main advantage of trading using opposite Viohalco and Accentis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viohalco position performs unexpectedly, Accentis 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 Accentis will offset losses from the drop in Accentis' long position.Viohalco vs. Van de Velde | Viohalco vs. NV Bekaert SA | Viohalco vs. Econocom Group SANV | Viohalco vs. Jensen Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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