Correlation Between Compagnie Plastic and Bet At
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Bet At 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 Bet At 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 bet at home AG, you can compare the effects of market volatilities on Compagnie Plastic and Bet At 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 Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Bet At.
Diversification Opportunities for Compagnie Plastic and Bet At
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compagnie and Bet is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home 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 Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Bet At go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Bet At
Assuming the 90 days trading horizon Compagnie Plastic Omnium is expected to under-perform the Bet At. But the stock apears to be less risky and, when comparing its historical volatility, Compagnie Plastic Omnium is 1.42 times less risky than Bet At. The stock trades about -0.04 of its potential returns per unit of risk. The bet at home AG is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 450.00 in bet at home AG on August 31, 2024 and sell it today you would lose (191.00) from holding bet at home AG or give up 42.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. bet at home AG
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| bet at home |
Compagnie Plastic and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Bet At
The main advantage of trading using opposite Compagnie Plastic and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Bet At 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 Bet At will offset losses from the drop in Bet At's long position.| Compagnie Plastic vs. Systemair AB | Compagnie Plastic vs. MTI Wireless Edge | Compagnie Plastic vs. Finnair Oyj | Compagnie Plastic vs. Cizzle Biotechnology Holdings |
| Bet At vs. Ross Stores | Bet At vs. Playtech Plc | Bet At vs. L3Harris Technologies | Bet At vs. Celebrus Technologies plc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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