Correlation Between LIFENET INSURANCE and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both LIFENET INSURANCE and Socit Gnrale 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 LIFENET INSURANCE and Socit Gnrale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFENET INSURANCE CO and Socit Gnrale Socit, you can compare the effects of market volatilities on LIFENET INSURANCE and Socit Gnrale 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 LIFENET INSURANCE with a short position of Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFENET INSURANCE and Socit Gnrale.
Diversification Opportunities for LIFENET INSURANCE and Socit Gnrale
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LIFENET and Socit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding LIFENET INSURANCE CO and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit and LIFENET INSURANCE 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 LIFENET INSURANCE CO are associated (or correlated) with Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of LIFENET INSURANCE i.e., LIFENET INSURANCE and Socit Gnrale go up and down completely randomly.
Pair Corralation between LIFENET INSURANCE and Socit Gnrale
Assuming the 90 days horizon LIFENET INSURANCE CO is expected to under-perform the Socit Gnrale. In addition to that, LIFENET INSURANCE is 1.19 times more volatile than Socit Gnrale Socit. It trades about -0.06 of its total potential returns per unit of risk. Socit Gnrale Socit is currently generating about 0.04 per unit of volatility. If you would invest 2,646 in Socit Gnrale Socit on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Socit Gnrale Socit or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFENET INSURANCE CO vs. Socit Gnrale Socit
Performance |
| Timeline |
| LIFENET INSURANCE |
| Socit Gnrale Socit |
LIFENET INSURANCE and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFENET INSURANCE and Socit Gnrale
The main advantage of trading using opposite LIFENET INSURANCE and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFENET INSURANCE position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.| LIFENET INSURANCE vs. Xtrackers LevDAX | LIFENET INSURANCE vs. Lyxor 1 | LIFENET INSURANCE vs. Xtrackers ShortDAX |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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