Correlation Between G8 EDUCATION and Crédit Agricole
Can any of the company-specific risk be diversified away by investing in both G8 EDUCATION and Crédit Agricole 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 Crédit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G8 EDUCATION and Crdit Agricole SA, you can compare the effects of market volatilities on G8 EDUCATION and Crédit Agricole 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 Crédit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of G8 EDUCATION and Crédit Agricole.
Diversification Opportunities for G8 EDUCATION and Crédit Agricole
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between 3EAG and Crédit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding G8 EDUCATION and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA 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 Crédit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of G8 EDUCATION i.e., G8 EDUCATION and Crédit Agricole go up and down completely randomly.
Pair Corralation between G8 EDUCATION and Crédit Agricole
Assuming the 90 days trading horizon G8 EDUCATION is expected to generate 2.81 times less return on investment than Crédit Agricole. In addition to that, G8 EDUCATION is 1.52 times more volatile than Crdit Agricole SA. It trades about 0.08 of its total potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.36 per unit of volatility. If you would invest 1,298 in Crdit Agricole SA on October 24, 2024 and sell it today you would earn a total of 106.00 from holding Crdit Agricole SA or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G8 EDUCATION vs. Crdit Agricole SA
Performance |
| Timeline |
| G8 EDUCATION |
| Crdit Agricole SA |
G8 EDUCATION and Crédit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G8 EDUCATION and Crédit Agricole
The main advantage of trading using opposite G8 EDUCATION and Crédit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G8 EDUCATION position performs unexpectedly, Crédit Agricole 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 Crédit Agricole will offset losses from the drop in Crédit Agricole's long position.| G8 EDUCATION vs. Granite Construction | G8 EDUCATION vs. GAMING FAC SA | G8 EDUCATION vs. Media and Games | G8 EDUCATION vs. CONTAGIOUS GAMING INC |
| Crédit Agricole vs. X FAB Silicon Foundries | Crédit Agricole vs. G8 EDUCATION | Crédit Agricole vs. Xinhua Winshare Publishing | Crédit Agricole vs. SEKISUI CHEMICAL |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |