Correlation Between TROPHY GAMES and Crdit Agricole
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and Crdit 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 TROPHY GAMES and Crdit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and Crdit Agricole SA, you can compare the effects of market volatilities on TROPHY GAMES and Crdit 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 TROPHY GAMES with a short position of Crdit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and Crdit Agricole.
Diversification Opportunities for TROPHY GAMES and Crdit Agricole
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TROPHY and Crdit is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV 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 TROPHY GAMES 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 TROPHY GAMES DEV are associated (or correlated) with Crdit 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 TROPHY GAMES i.e., TROPHY GAMES and Crdit Agricole go up and down completely randomly.
Pair Corralation between TROPHY GAMES and Crdit Agricole
Assuming the 90 days horizon TROPHY GAMES DEV is expected to generate 2.28 times more return on investment than Crdit Agricole. However, TROPHY GAMES is 2.28 times more volatile than Crdit Agricole SA. It trades about 0.07 of its potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.05 per unit of risk. If you would invest 50.00 in TROPHY GAMES DEV on November 9, 2024 and sell it today you would earn a total of 33.00 from holding TROPHY GAMES DEV or generate 66.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. Crdit Agricole SA
Performance |
| Timeline |
| TROPHY GAMES DEV |
| Crdit Agricole SA |
TROPHY GAMES and Crdit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and Crdit Agricole
The main advantage of trading using opposite TROPHY GAMES and Crdit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, Crdit 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 Crdit Agricole will offset losses from the drop in Crdit Agricole's long position.| TROPHY GAMES vs. GRUPO CARSO A1 | TROPHY GAMES vs. CARSALESCOM | TROPHY GAMES vs. INTER CARS SA | TROPHY GAMES vs. Nomad Foods |
| Crdit Agricole vs. NTT DATA | Crdit Agricole vs. Alliance Data Systems | Crdit Agricole vs. Teradata Corp | Crdit Agricole vs. Guangdong Investment Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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