Correlation Between MEITUAN UNSPADR2B and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both MEITUAN UNSPADR2B 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 MEITUAN UNSPADR2B and Socit Gnrale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEITUAN UNSPADR2B and Socit Gnrale Socit, you can compare the effects of market volatilities on MEITUAN UNSPADR2B 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 MEITUAN UNSPADR2B with a short position of Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEITUAN UNSPADR2B and Socit Gnrale.
Diversification Opportunities for MEITUAN UNSPADR2B and Socit Gnrale
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEITUAN and Socit is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding MEITUAN UNSPADR2B 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 MEITUAN UNSPADR2B 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 MEITUAN UNSPADR2B 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 MEITUAN UNSPADR2B i.e., MEITUAN UNSPADR2B and Socit Gnrale go up and down completely randomly.
Pair Corralation between MEITUAN UNSPADR2B and Socit Gnrale
Assuming the 90 days trading horizon MEITUAN UNSPADR2B is expected to generate 2.15 times more return on investment than Socit Gnrale. However, MEITUAN UNSPADR2B is 2.15 times more volatile than Socit Gnrale Socit. It trades about 0.11 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about -0.02 per unit of risk. If you would invest 2,340 in MEITUAN UNSPADR2B on August 29, 2024 and sell it today you would earn a total of 1,620 from holding MEITUAN UNSPADR2B or generate 69.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEITUAN UNSPADR2B vs. Socit Gnrale Socit
Performance |
| Timeline |
| MEITUAN UNSPADR2B |
| Socit Gnrale Socit |
MEITUAN UNSPADR2B and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEITUAN UNSPADR2B and Socit Gnrale
The main advantage of trading using opposite MEITUAN UNSPADR2B and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEITUAN UNSPADR2B 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.| MEITUAN UNSPADR2B vs. Mitsubishi Materials | MEITUAN UNSPADR2B vs. Hyster Yale Materials Handling | MEITUAN UNSPADR2B vs. Entravision Communications | MEITUAN UNSPADR2B vs. Plastic Omnium |
| Socit Gnrale vs. BNP Paribas SA | Socit Gnrale vs. Deutsche Bank Aktiengesellschaft | Socit Gnrale vs. Santander Bank Polska |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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