Correlation Between Partners and Exor NV

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

By analyzing existing cross correlation between Partners Group and Exor NV, you can compare the effects of market volatilities on Partners and Exor NV 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 Partners with a short position of Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners and Exor NV.

Diversification Opportunities for Partners and Exor NV

0.42

Correlation Coefficient

Partners  Exor NV

Very weak diversification

The 3 months correlation between Partners and Exor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Partners Group and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV and Partners 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 Partners Group are associated (or correlated) with Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of Partners i.e., Partners and Exor NV go up and down completely randomly.

Pair Corralation between Partners and Exor NV

Assuming the 90 days horizon Partners Group is expected to under-perform the Exor NV. In addition to that, Partners is 1.93 times more volatile than Exor NV. It trades about -0.08 of its total potential returns per unit of risk. Exor NV is currently generating about 0.1 per unit of volatility. If you would invest  10,845  in Exor NV on February 4, 2024 and sell it today you would earn a total of  286.00  from holding Exor NV or generate 2.64% return on investment over 90 days.

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

Partners Group  vs.  Exor NV

Partners Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Partners Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical indicators, Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Exor NV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exor NV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Exor NV may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Partners and Exor NV

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

The idea behind Partners Group and Exor NV 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.