Correlation Between Compagnie Plastic and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on Compagnie Plastic and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Liontrust Asset.
Diversification Opportunities for Compagnie Plastic and Liontrust Asset
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compagnie and Liontrust is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Liontrust Asset go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Liontrust Asset
Assuming the 90 days trading horizon Compagnie Plastic Omnium is expected to generate 1.17 times more return on investment than Liontrust Asset. However, Compagnie Plastic is 1.17 times more volatile than Liontrust Asset Management. It trades about -0.05 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.13 per unit of risk. If you would invest 1,075 in Compagnie Plastic Omnium on September 2, 2024 and sell it today you would lose (210.00) from holding Compagnie Plastic Omnium or give up 19.53% 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. Liontrust Asset Management
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Liontrust Asset Mana |
Compagnie Plastic and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Liontrust Asset
The main advantage of trading using opposite Compagnie Plastic and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Compagnie Plastic vs. Uniper SE | Compagnie Plastic vs. Mulberry Group PLC | Compagnie Plastic vs. London Security Plc | Compagnie Plastic vs. Triad Group PLC |
| Liontrust Asset vs. Liberty Media Corp | Liontrust Asset vs. Cars Inc | Liontrust Asset vs. Universal Display Corp | Liontrust Asset vs. Flutter Entertainment 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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