Correlation Between Van De and Atenor SA

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

By analyzing existing cross correlation between Van de Velde and Atenor SA, you can compare the effects of market volatilities on Van De and Atenor 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 Van De with a short position of Atenor SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van De and Atenor SA.

Diversification Opportunities for Van De and Atenor SA

0.24

Correlation Coefficient

Van De  Atenor SA

Modest diversification

The 3 months correlation between Van and Atenor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Van de Velde and Atenor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atenor SA and Van De 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 Van de Velde are associated (or correlated) with Atenor SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atenor SA has no effect on the direction of Van De i.e., Van De and Atenor SA go up and down completely randomly.

Pair Corralation between Van De and Atenor SA

Assuming the 90 days trading horizon Van de Velde is expected to under-perform the Atenor SA. But the stock apears to be less risky and, when comparing its historical volatility, Van de Velde is 1.89 times less risky than Atenor SA. The stock trades about -0.56 of its potential returns per unit of risk. The Atenor SA is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest  433.00  in Atenor SA on August 31, 2024 and sell it today you would lose (30.00) from holding Atenor SA or give up 6.93% of portfolio value over 90 days.

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

Van de Velde  vs.  Atenor SA

Van de Velde

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Van de Velde has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Atenor SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atenor SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Van De and Atenor SA

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

The idea behind Van de Velde and Atenor 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.