Correlation Between Compagnie Plastic and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Ion Beam 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 Compagnie Plastic and Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and Ion Beam Applications, you can compare the effects of market volatilities on Compagnie Plastic and Ion Beam 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 Compagnie Plastic with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Ion Beam.
Diversification Opportunities for Compagnie Plastic and Ion Beam
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Compagnie and Ion is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Compagnie Plastic 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 Compagnie Plastic Omnium are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Ion Beam go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Ion Beam
Assuming the 90 days trading horizon Compagnie Plastic Omnium is expected to generate 1.36 times more return on investment than Ion Beam. However, Compagnie Plastic is 1.36 times more volatile than Ion Beam Applications. It trades about 0.12 of its potential returns per unit of risk. Ion Beam Applications is currently generating about 0.03 per unit of risk. If you would invest 923.00 in Compagnie Plastic Omnium on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Compagnie Plastic Omnium or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Ion Beam Applications
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Ion Beam Applications |
Compagnie Plastic and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Ion Beam
The main advantage of trading using opposite Compagnie Plastic and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| Compagnie Plastic vs. Celebrus Technologies plc | Compagnie Plastic vs. Allianz Technology Trust | Compagnie Plastic vs. Futura Medical | Compagnie Plastic vs. Molson Coors Beverage |
| Ion Beam vs. Cars Inc | Ion Beam vs. Finnair Oyj | Ion Beam vs. Blackrock World Mining | Ion Beam vs. Sealed Air Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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