Correlation Between Accor S and Vinci SA
Can any of the company-specific risk be diversified away by investing in both Accor S and Vinci SA 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 Accor S and Vinci SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accor S A and Vinci SA, you can compare the effects of market volatilities on Accor S and Vinci SA 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 Accor S with a short position of Vinci SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accor S and Vinci SA.
Diversification Opportunities for Accor S and Vinci SA
Pay attention - limited upside
The 3 months correlation between Accor and Vinci is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Accor S A and Vinci SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci SA and Accor S 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 Accor S A are associated (or correlated) with Vinci SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci SA has no effect on the direction of Accor S i.e., Accor S and Vinci SA go up and down completely randomly.
Pair Corralation between Accor S and Vinci SA
Assuming the 90 days horizon Accor S A is expected to generate 1.46 times more return on investment than Vinci SA. However, Accor S is 1.46 times more volatile than Vinci SA. It trades about 0.15 of its potential returns per unit of risk. Vinci SA is currently generating about -0.13 per unit of risk. If you would invest 4,166 in Accor S A on September 1, 2024 and sell it today you would earn a total of 202.00 from holding Accor S A or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Accor S A vs. Vinci SA
Performance |
| Timeline |
| Accor S A |
| Vinci SA |
Accor S and Vinci SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accor S and Vinci SA
The main advantage of trading using opposite Accor S and Vinci SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accor S position performs unexpectedly, Vinci SA 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 Vinci SA will offset losses from the drop in Vinci SA's long position.| Accor S vs. Les Hotels Bav | Accor S vs. Groupe Partouche SA | Accor S vs. Centrale dAchat Franaise | Accor S vs. Manitou BF SA |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |