Correlation Between Seche Environnement and Impax Asset
Can any of the company-specific risk be diversified away by investing in both Seche Environnement and Impax 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 Seche Environnement and Impax Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seche Environnement SA and Impax Asset Management, you can compare the effects of market volatilities on Seche Environnement and Impax 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 Seche Environnement with a short position of Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seche Environnement and Impax Asset.
Diversification Opportunities for Seche Environnement and Impax Asset
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Seche and Impax is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnement SA and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management and Seche Environnement 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 Seche Environnement SA are associated (or correlated) with Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of Seche Environnement i.e., Seche Environnement and Impax Asset go up and down completely randomly.
Pair Corralation between Seche Environnement and Impax Asset
Assuming the 90 days trading horizon Seche Environnement SA is expected to generate 0.76 times more return on investment than Impax Asset. However, Seche Environnement SA is 1.31 times less risky than Impax Asset. It trades about -0.04 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.04 per unit of risk. If you would invest 10,236 in Seche Environnement SA on September 3, 2024 and sell it today you would lose (2,036) from holding Seche Environnement SA or give up 19.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Seche Environnement SA vs. Impax Asset Management
Performance |
| Timeline |
| Seche Environnement |
| Impax Asset Management |
Seche Environnement and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seche Environnement and Impax Asset
The main advantage of trading using opposite Seche Environnement and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnement position performs unexpectedly, Impax 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 Impax Asset will offset losses from the drop in Impax Asset's long position.| Seche Environnement vs. STMicroelectronics NV | Seche Environnement vs. Air Products Chemicals | Seche Environnement vs. Federal Realty Investment | Seche Environnement vs. X FAB Silicon Foundries |
| Impax Asset vs. Seche Environnement SA | Impax Asset vs. Veolia Environnement VE | Impax Asset vs. Check Point Software | Impax Asset vs. AIM ImmunoTech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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