Correlation Between G8 EDUCATION and Capgemini
Can any of the company-specific risk be diversified away by investing in both G8 EDUCATION and Capgemini 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 G8 EDUCATION and Capgemini into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G8 EDUCATION and Capgemini SE, you can compare the effects of market volatilities on G8 EDUCATION and Capgemini 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 G8 EDUCATION with a short position of Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of G8 EDUCATION and Capgemini.
Diversification Opportunities for G8 EDUCATION and Capgemini
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 3EAG and Capgemini is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding G8 EDUCATION and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE and G8 EDUCATION 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 G8 EDUCATION are associated (or correlated) with Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of G8 EDUCATION i.e., G8 EDUCATION and Capgemini go up and down completely randomly.
Pair Corralation between G8 EDUCATION and Capgemini
Assuming the 90 days trading horizon G8 EDUCATION is expected to under-perform the Capgemini. In addition to that, G8 EDUCATION is 1.25 times more volatile than Capgemini SE. It trades about -0.06 of its total potential returns per unit of risk. Capgemini SE is currently generating about -0.05 per unit of volatility. If you would invest 16,285 in Capgemini SE on October 11, 2024 and sell it today you would lose (430.00) from holding Capgemini SE or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.44% |
| Values | Daily Returns |
G8 EDUCATION vs. Capgemini SE
Performance |
| Timeline |
| G8 EDUCATION |
| Capgemini SE |
G8 EDUCATION and Capgemini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G8 EDUCATION and Capgemini
The main advantage of trading using opposite G8 EDUCATION and Capgemini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G8 EDUCATION position performs unexpectedly, Capgemini 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 Capgemini will offset losses from the drop in Capgemini's long position.| G8 EDUCATION vs. VIVA WINE GROUP | G8 EDUCATION vs. SAN MIGUEL BREWERY | G8 EDUCATION vs. Ebro Foods SA | G8 EDUCATION vs. Molson Coors Beverage |
| Capgemini vs. STEEL DYNAMICS | Capgemini vs. Nippon Steel | Capgemini vs. Aegean Airlines SA | Capgemini vs. Insteel Industries |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |