Correlation Between Avenir Telecom and Body One

Can any of the company-specific risk be diversified away by investing in both Avenir Telecom and Body One 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 Avenir Telecom and Body One into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Avenir Telecom and Body One

0.0

Correlation Coefficient

Avenir Telecom  Body One

Pay attention - limited upside

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

Pair Corralation between Avenir Telecom and Body One

If you would invest  0.00  in Body One SA on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Body One SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Avenir Telecom SA  vs.  Body One SA

Avenir Telecom SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avenir Telecom SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Body One SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Body One SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Body One reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Avenir Telecom and Body One

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

The idea behind Avenir Telecom SA and Body One 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.