Correlation Between ACTEOS SA and Solutions

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

By analyzing existing cross correlation between ACTEOS SA and Solutions 30 SE, you can compare the effects of market volatilities on ACTEOS SA and Solutions 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 Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACTEOS SA and Solutions.

Diversification Opportunities for ACTEOS SA and Solutions

0.58

Correlation Coefficient

ACTEOS SA  Solutions

Very weak diversification

The 3 months correlation between ACTEOS and Solutions is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA and Solutions 30 SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solutions 30 SE 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 Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solutions 30 SE has no effect on the direction of ACTEOS SA i.e., ACTEOS SA and Solutions go up and down completely randomly.

Pair Corralation between ACTEOS SA and Solutions

Assuming the 90 days trading horizon ACTEOS SA is expected to generate 1.71 times less return on investment than Solutions. In addition to that, ACTEOS SA is 1.28 times more volatile than Solutions 30 SE. It trades about 0.04 of its total potential returns per unit of risk. Solutions 30 SE is currently generating about 0.1 per unit of volatility. If you would invest  162.00  in Solutions 30 SE on April 22, 2025 and sell it today you would earn a total of  29.00  from holding Solutions 30 SE or generate 17.9% return on investment over 90 days.

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

ACTEOS SA  vs.  Solutions 30 SE

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.

Solutions 30 SE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Solutions 30 SE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Solutions sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ACTEOS SA and Solutions

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

The idea behind ACTEOS SA and Solutions 30 SE 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.