Correlation Between Cxj Group and Aquafil SpA

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Can any of the company-specific risk be diversified away by investing in both Cxj Group and Aquafil SpA 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 Cxj Group and Aquafil SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cxj Group Co and Aquafil SpA, you can compare the effects of market volatilities on Cxj Group and Aquafil SpA 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 Cxj Group with a short position of Aquafil SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cxj Group and Aquafil SpA.

Diversification Opportunities for Cxj Group and Aquafil SpA

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Cxj and Aquafil is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cxj Group Co and Aquafil SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquafil SpA and Cxj Group 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 Cxj Group Co are associated (or correlated) with Aquafil SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquafil SpA has no effect on the direction of Cxj Group i.e., Cxj Group and Aquafil SpA go up and down completely randomly.

Pair Corralation between Cxj Group and Aquafil SpA

Given the investment horizon of 90 days Cxj Group Co is expected to generate 41.59 times more return on investment than Aquafil SpA. However, Cxj Group is 41.59 times more volatile than Aquafil SpA. It trades about 0.13 of its potential returns per unit of risk. Aquafil SpA is currently generating about 0.17 per unit of risk. If you would invest  0.80  in Cxj Group Co on August 15, 2025 and sell it today you would earn a total of  188.20  from holding Cxj Group Co or generate 23525.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Cxj Group Co  vs.  Aquafil SpA

 Performance 
       Timeline  
Cxj Group 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cxj Group Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Cxj Group revealed solid returns over the last few months and may actually be approaching a breakup point.
Aquafil SpA 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aquafil SpA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Aquafil SpA reported solid returns over the last few months and may actually be approaching a breakup point.

Cxj Group and Aquafil SpA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cxj Group and Aquafil SpA

The main advantage of trading using opposite Cxj Group and Aquafil SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cxj Group position performs unexpectedly, Aquafil SpA 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 Aquafil SpA will offset losses from the drop in Aquafil SpA's long position.
The idea behind Cxj Group Co and Aquafil SpA 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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