Correlation Between Elis SA and Cass Information
Can any of the company-specific risk be diversified away by investing in both Elis SA and Cass Information 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 Elis SA and Cass Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elis SA and Cass Information Systems, you can compare the effects of market volatilities on Elis SA and Cass Information 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 Elis SA with a short position of Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elis SA and Cass Information.
Diversification Opportunities for Elis SA and Cass Information
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elis and Cass is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Elis SA and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems and Elis SA 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 Elis SA are associated (or correlated) with Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Elis SA i.e., Elis SA and Cass Information go up and down completely randomly.
Pair Corralation between Elis SA and Cass Information
Assuming the 90 days horizon Elis SA is expected to under-perform the Cass Information. In addition to that, Elis SA is 1.15 times more volatile than Cass Information Systems. It trades about -0.43 of its total potential returns per unit of risk. Cass Information Systems is currently generating about 0.01 per unit of volatility. If you would invest 4,150 in Cass Information Systems on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Cass Information Systems or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elis SA vs. Cass Information Systems
Performance |
| Timeline |
| Elis SA |
| Cass Information Systems |
Elis SA and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elis SA and Cass Information
The main advantage of trading using opposite Elis SA and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elis SA position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Elis SA vs. Cintas | Elis SA vs. RELO GROUP INC | Elis SA vs. Superior Plus Corp | Elis SA vs. SIVERS SEMICONDUCTORS AB |
| Cass Information vs. Cintas | Cass Information vs. RELO GROUP INC | Cass Information vs. Superior Plus Corp | Cass Information vs. SIVERS SEMICONDUCTORS AB |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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