Correlation Between AS Roma and Shimano
Can any of the company-specific risk be diversified away by investing in both AS Roma and Shimano 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 AS Roma and Shimano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AS Roma SPA and Shimano Inc ADR, you can compare the effects of market volatilities on AS Roma and Shimano 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 AS Roma with a short position of Shimano. Check out your portfolio center. Please also check ongoing floating volatility patterns of AS Roma and Shimano.
Diversification Opportunities for AS Roma and Shimano
Pay attention - limited upside
The 3 months correlation between ASRAF and Shimano is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AS Roma SPA and Shimano Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shimano Inc ADR and AS Roma 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 AS Roma SPA are associated (or correlated) with Shimano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shimano Inc ADR has no effect on the direction of AS Roma i.e., AS Roma and Shimano go up and down completely randomly.
Pair Corralation between AS Roma and Shimano
If you would invest 1,466 in Shimano Inc ADR on January 25, 2024 and sell it today you would earn a total of 146.00 from holding Shimano Inc ADR or generate 9.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
AS Roma SPA vs. Shimano Inc ADR
Performance |
Timeline |
AS Roma SPA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shimano Inc ADR |
AS Roma and Shimano Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AS Roma and Shimano
The main advantage of trading using opposite AS Roma and Shimano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AS Roma position performs unexpectedly, Shimano 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 Shimano will offset losses from the drop in Shimano's long position.AS Roma vs. Avient Corp | AS Roma vs. Avis Budget Group | AS Roma vs. Herc Holdings | AS Roma vs. NL Industries |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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