Correlation Between AFP Capital and Sigdo Koppers

Can any of the company-specific risk be diversified away by investing in both AFP Capital and Sigdo Koppers 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 AFP Capital and Sigdo Koppers into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for AFP Capital and Sigdo Koppers

0.0

Correlation Coefficient

AFP Capital  Sigdo Koppers

Pay attention - limited upside

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

Pair Corralation between AFP Capital and Sigdo Koppers

If you would invest  0.00  in Sigdo Koppers on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Sigdo Koppers or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	9.09%
Values	Daily Returns

AFP Capital SA  vs.  Sigdo Koppers

AFP Capital SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AFP Capital SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, AFP Capital is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Sigdo Koppers

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with AFP Capital and Sigdo Koppers

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

The idea behind AFP Capital SA and Sigdo Koppers 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.