Correlation Between Logismos Information and AVE SA

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

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

Diversification Opportunities for Logismos Information and AVE SA

0.17

Correlation Coefficient

Logismos Information  AVE SA

Average diversification

The 3 months correlation between Logismos and AVE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Logismos Information Systems and AVE SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVE SA and Logismos Information 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 Logismos Information Systems are associated (or correlated) with AVE SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVE SA has no effect on the direction of Logismos Information i.e., Logismos Information and AVE SA go up and down completely randomly.

Pair Corralation between Logismos Information and AVE SA

Assuming the 90 days trading horizon Logismos Information is expected to generate 2.48 times less return on investment than AVE SA. But when comparing it to its historical volatility, Logismos Information Systems is 3.0 times less risky than AVE SA. It trades about 0.14 of its potential returns per unit of risk. AVE SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  44.00  in AVE SA on April 24, 2025 and sell it today you would earn a total of  8.00  from holding AVE SA or generate 18.18% return on investment over 90 days.

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

Logismos Information Systems  vs.  AVE SA

Logismos Information

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Logismos Information Systems are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Logismos Information may actually be approaching a critical reversion point that can send shares even higher in August 2025.

AVE SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AVE SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, AVE SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Logismos Information and AVE SA

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

The idea behind Logismos Information Systems and AVE SA 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.