Correlation Between Credit Agricole and Hitechpros
Can any of the company-specific risk be diversified away by investing in both Credit Agricole and Hitechpros 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 Credit Agricole and Hitechpros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Agricole SA and Hitechpros, you can compare the effects of market volatilities on Credit Agricole and Hitechpros 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 Credit Agricole with a short position of Hitechpros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and Hitechpros.
Diversification Opportunities for Credit Agricole and Hitechpros
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and Hitechpros is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole SA and Hitechpros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitechpros and Credit Agricole 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 Credit Agricole SA are associated (or correlated) with Hitechpros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitechpros has no effect on the direction of Credit Agricole i.e., Credit Agricole and Hitechpros go up and down completely randomly.
Pair Corralation between Credit Agricole and Hitechpros
Assuming the 90 days trading horizon Credit Agricole SA is expected to under-perform the Hitechpros. But the stock apears to be less risky and, when comparing its historical volatility, Credit Agricole SA is 1.34 times less risky than Hitechpros. The stock trades about -0.34 of its potential returns per unit of risk. The Hitechpros is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Hitechpros on September 1, 2024 and sell it today you would lose (80.00) from holding Hitechpros or give up 4.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Agricole SA vs. Hitechpros
Performance |
| Timeline |
| Credit Agricole SA |
| Hitechpros |
Credit Agricole and Hitechpros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Agricole and Hitechpros
The main advantage of trading using opposite Credit Agricole and Hitechpros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole position performs unexpectedly, Hitechpros 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 Hitechpros will offset losses from the drop in Hitechpros' long position.| Credit Agricole vs. Societe Generale SA | Credit Agricole vs. BNP Paribas SA | Credit Agricole vs. AXA SA | Credit Agricole vs. Orange SA |
| Hitechpros vs. Groupe Guillin SA | Hitechpros vs. Infotel SA | Hitechpros vs. Linedata Services SA | Hitechpros vs. Aubay Socit Anonyme |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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