Correlation Between Ercros and Lleidanetworks Serveis

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

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

Diversification Opportunities for Ercros and Lleidanetworks Serveis

-0.04

Correlation Coefficient

Ercros  Lleidanetworks Serveis

Good diversification

The 3 months correlation between Ercros and Lleidanetworks is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ercros and Lleidanetworks Serveis Telemat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lleidanetworks Serveis and Ercros 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 Ercros are associated (or correlated) with Lleidanetworks Serveis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lleidanetworks Serveis has no effect on the direction of Ercros i.e., Ercros and Lleidanetworks Serveis go up and down completely randomly.

Pair Corralation between Ercros and Lleidanetworks Serveis

Assuming the 90 days trading horizon Ercros is expected to generate 3.04 times less return on investment than Lleidanetworks Serveis. But when comparing it to its historical volatility, Ercros is 2.79 times less risky than Lleidanetworks Serveis. It trades about 0.04 of its potential returns per unit of risk. Lleidanetworks Serveis Telematics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  114.00  in Lleidanetworks Serveis Telematics on April 24, 2025 and sell it today you would earn a total of  7.00  from holding Lleidanetworks Serveis Telematics or generate 6.14% return on investment over 90 days.

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

Ercros  vs.  Lleidanetworks Serveis Telemat

Ercros

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ercros are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Ercros is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Lleidanetworks Serveis

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lleidanetworks Serveis Telematics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Lleidanetworks Serveis may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Ercros and Lleidanetworks Serveis

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

The idea behind Ercros and Lleidanetworks Serveis Telematics 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.