Correlation Between Aenza SAA and Concrete Pumping

Can any of the company-specific risk be diversified away by investing in both Aenza SAA and Concrete Pumping 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 Aenza SAA and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aenza SAA and Concrete Pumping Holdings, you can compare the effects of market volatilities on Aenza SAA and Concrete Pumping 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 Aenza SAA with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aenza SAA and Concrete Pumping.

Diversification Opportunities for Aenza SAA and Concrete Pumping

0.0

Correlation Coefficient

Aenza SAA  Concrete Pumping

Pay attention - limited upside

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

Pair Corralation between Aenza SAA and Concrete Pumping

If you would invest  194.00  in Aenza SAA on February 10, 2024 and sell it today you would earn a total of  0.00  from holding Aenza SAA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

Aenza SAA  vs.  Concrete Pumping Holdings

Aenza SAA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aenza SAA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Aenza SAA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Concrete Pumping Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Aenza SAA and Concrete Pumping

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

The idea behind Aenza SAA and Concrete Pumping Holdings 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.