Correlation Between ACTEOS SA and Bd Multimedia

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

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

Diversification Opportunities for ACTEOS SA and Bd Multimedia

0.84

Correlation Coefficient

ACTEOS SA  Bd Multimedia

Very poor diversification

The 3 months correlation between ACTEOS and ALBDM is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA and Bd Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bd Multimedia and ACTEOS SA 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 ACTEOS SA are associated (or correlated) with Bd Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bd Multimedia has no effect on the direction of ACTEOS SA i.e., ACTEOS SA and Bd Multimedia go up and down completely randomly.

Pair Corralation between ACTEOS SA and Bd Multimedia

Assuming the 90 days trading horizon ACTEOS SA is expected to generate 26.15 times less return on investment than Bd Multimedia. But when comparing it to its historical volatility, ACTEOS SA is 4.59 times less risky than Bd Multimedia. It trades about 0.05 of its potential returns per unit of risk. Bd Multimedia is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  82.00  in Bd Multimedia on April 22, 2025 and sell it today you would earn a total of  770.00  from holding Bd Multimedia or generate 939.02% return on investment over 90 days.

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

ACTEOS SA  vs.  Bd Multimedia

ACTEOS SA

Risk-Adjusted Performance

Insignificant

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

Bd Multimedia

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bd Multimedia are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bd Multimedia reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ACTEOS SA and Bd Multimedia

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

The idea behind ACTEOS SA and Bd Multimedia 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.