Correlation Between SWISS WATER and Fnac Darty
Can any of the company-specific risk be diversified away by investing in both SWISS WATER and Fnac Darty 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 SWISS WATER and Fnac Darty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWISS WATER DECAFFCOFFEE and Fnac Darty SA, you can compare the effects of market volatilities on SWISS WATER and Fnac Darty 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 SWISS WATER with a short position of Fnac Darty. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWISS WATER and Fnac Darty.
Diversification Opportunities for SWISS WATER and Fnac Darty
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SWISS and Fnac is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SWISS WATER DECAFFCOFFEE and Fnac Darty SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fnac Darty SA and SWISS WATER 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 SWISS WATER DECAFFCOFFEE are associated (or correlated) with Fnac Darty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fnac Darty SA has no effect on the direction of SWISS WATER i.e., SWISS WATER and Fnac Darty go up and down completely randomly.
Pair Corralation between SWISS WATER and Fnac Darty
Assuming the 90 days horizon SWISS WATER DECAFFCOFFEE is expected to generate 0.8 times more return on investment than Fnac Darty. However, SWISS WATER DECAFFCOFFEE is 1.24 times less risky than Fnac Darty. It trades about 0.13 of its potential returns per unit of risk. Fnac Darty SA is currently generating about 0.04 per unit of risk. If you would invest 252.00 in SWISS WATER DECAFFCOFFEE on August 31, 2024 and sell it today you would earn a total of 16.00 from holding SWISS WATER DECAFFCOFFEE or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SWISS WATER DECAFFCOFFEE vs. Fnac Darty SA
Performance |
| Timeline |
| SWISS WATER DECAFFCOFFEE |
| Fnac Darty SA |
SWISS WATER and Fnac Darty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWISS WATER and Fnac Darty
The main advantage of trading using opposite SWISS WATER and Fnac Darty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWISS WATER position performs unexpectedly, Fnac Darty 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 Fnac Darty will offset losses from the drop in Fnac Darty's long position.| SWISS WATER vs. Pure Storage | SWISS WATER vs. DICKER DATA LTD | SWISS WATER vs. DATANG INTL POW | SWISS WATER vs. Public Storage |
| Fnac Darty vs. Siamgas And Petrochemicals | Fnac Darty vs. Sumitomo Chemical | Fnac Darty vs. CVW CLEANTECH INC | Fnac Darty vs. Shin Etsu Chemical Co |
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
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| 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 | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |