Correlation Between ACS Actividades and Safran SA
Can any of the company-specific risk be diversified away by investing in both ACS Actividades and Safran 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 ACS Actividades and Safran SA 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 Safran SA, you can compare the effects of market volatilities on ACS Actividades and Safran 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 ACS Actividades with a short position of Safran SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACS Actividades and Safran SA.
Diversification Opportunities for ACS Actividades and Safran SA
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACS and Safran is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding ACS Actividades De and Safran SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safran SA 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 Safran SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safran SA has no effect on the direction of ACS Actividades i.e., ACS Actividades and Safran SA go up and down completely randomly.
Pair Corralation between ACS Actividades and Safran SA
Assuming the 90 days horizon ACS Actividades De is expected to generate 1.01 times more return on investment than Safran SA. However, ACS Actividades is 1.01 times more volatile than Safran SA. It trades about 0.21 of its potential returns per unit of risk. Safran SA is currently generating about 0.06 per unit of risk. If you would invest 1,503 in ACS Actividades De on August 13, 2025 and sell it today you would earn a total of 294.00 from holding ACS Actividades De or generate 19.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
ACS Actividades De vs. Safran SA
Performance |
| Timeline |
| ACS Actividades De |
| Safran SA |
ACS Actividades and Safran SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACS Actividades and Safran SA
The main advantage of trading using opposite ACS Actividades and Safran SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACS Actividades position performs unexpectedly, Safran 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 Safran SA will offset losses from the drop in Safran SA's long position.| ACS Actividades vs. Bouygues SA ADR | ACS Actividades vs. VINCI SA | ACS Actividades vs. Vinci SA ADR | ACS Actividades vs. Wartsila Oyj Abp |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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