Correlation Between CLOVER HEALTH and Crédit Agricole
Can any of the company-specific risk be diversified away by investing in both CLOVER HEALTH 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 CLOVER HEALTH and Crédit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLOVER HEALTH INV and Crdit Agricole SA, you can compare the effects of market volatilities on CLOVER HEALTH 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 CLOVER HEALTH with a short position of Crédit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLOVER HEALTH and Crédit Agricole.
Diversification Opportunities for CLOVER HEALTH and Crédit Agricole
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CLOVER and Crédit is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CLOVER HEALTH INV 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 CLOVER HEALTH 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 CLOVER HEALTH INV 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 CLOVER HEALTH i.e., CLOVER HEALTH and Crédit Agricole go up and down completely randomly.
Pair Corralation between CLOVER HEALTH and Crédit Agricole
Assuming the 90 days horizon CLOVER HEALTH INV is expected to generate 2.3 times more return on investment than Crédit Agricole. However, CLOVER HEALTH is 2.3 times more volatile than Crdit Agricole SA. It trades about 0.5 of its potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.12 per unit of risk. If you would invest 279.00 in CLOVER HEALTH INV on October 14, 2024 and sell it today you would earn a total of 67.00 from holding CLOVER HEALTH INV or generate 24.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CLOVER HEALTH INV vs. Crdit Agricole SA
Performance |
| Timeline |
| CLOVER HEALTH INV |
| Crdit Agricole SA |
CLOVER HEALTH and Crédit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLOVER HEALTH and Crédit Agricole
The main advantage of trading using opposite CLOVER HEALTH and Crédit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLOVER HEALTH 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.| CLOVER HEALTH vs. PLAYWAY SA ZY 10 | CLOVER HEALTH vs. ARISTOCRAT LEISURE | CLOVER HEALTH vs. SEKISUI CHEMICAL | CLOVER HEALTH vs. Playmates Toys Limited |
| Crédit Agricole vs. OBSERVE MEDICAL ASA | Crédit Agricole vs. YOOMA WELLNESS INC | Crédit Agricole vs. Japan Tobacco | Crédit Agricole vs. CLOVER HEALTH INV |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |