Correlation Between ACS Actividades and NBI Bearings
Can any of the company-specific risk be diversified away by investing in both ACS Actividades and NBI Bearings 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 ACS Actividades and NBI Bearings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACS Actividades de and NBI Bearings Europe, you can compare the effects of market volatilities on ACS Actividades and NBI Bearings 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 ACS Actividades with a short position of NBI Bearings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and NBI Bearings.
Diversification Opportunities for ACS Actividades and NBI Bearings
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACS and NBI is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades de and NBI Bearings Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBI Bearings Europe and ACS Actividades 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 ACS Actividades de are associated (or correlated) with NBI Bearings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBI Bearings Europe has no effect on the direction of ACS Actividades i.e., ACS Actividades and NBI Bearings go up and down completely randomly.
Pair Corralation between ACS Actividades and NBI Bearings
Assuming the 90 days trading horizon ACS Actividades de is expected to generate 0.86 times more return on investment than NBI Bearings. However, ACS Actividades de is 1.16 times less risky than NBI Bearings. It trades about 0.18 of its potential returns per unit of risk. NBI Bearings Europe is currently generating about -0.13 per unit of risk. If you would invest 6,595 in ACS Actividades de on August 21, 2025 and sell it today you would earn a total of 1,105 from holding ACS Actividades de or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
ACS Actividades de vs. NBI Bearings Europe
Performance |
| Timeline |
| ACS Actividades de |
| NBI Bearings Europe |
ACS Actividades and NBI Bearings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACS Actividades and NBI Bearings
The main advantage of trading using opposite ACS Actividades and NBI Bearings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACS Actividades position performs unexpectedly, NBI Bearings 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 NBI Bearings will offset losses from the drop in NBI Bearings' long position.| ACS Actividades vs. Acciona | ACS Actividades vs. International Consolidated Airlines | ACS Actividades vs. Tecnicas Reunidas | ACS Actividades vs. Sacyr SA |
| NBI Bearings vs. Gri Ecologic SA | NBI Bearings vs. Endurance Motive SA | NBI Bearings vs. Duro Felguera | NBI Bearings vs. Catenon SA |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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