Correlation Between Credit Agricole and Sogeclair
Can any of the company-specific risk be diversified away by investing in both Credit Agricole and Sogeclair 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 Sogeclair 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 Sogeclair SA, you can compare the effects of market volatilities on Credit Agricole and Sogeclair 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 Sogeclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and Sogeclair.
Diversification Opportunities for Credit Agricole and Sogeclair
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Credit and Sogeclair is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole SA and Sogeclair SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogeclair SA 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 Sogeclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogeclair SA has no effect on the direction of Credit Agricole i.e., Credit Agricole and Sogeclair go up and down completely randomly.
Pair Corralation between Credit Agricole and Sogeclair
Assuming the 90 days trading horizon Credit Agricole SA is expected to generate 0.51 times more return on investment than Sogeclair. However, Credit Agricole SA is 1.97 times less risky than Sogeclair. It trades about -0.08 of its potential returns per unit of risk. Sogeclair SA is currently generating about -0.06 per unit of risk. If you would invest 1,472 in Credit Agricole SA on September 2, 2024 and sell it today you would lose (205.00) from holding Credit Agricole SA or give up 13.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Agricole SA vs. Sogeclair SA
Performance |
| Timeline |
| Credit Agricole SA |
| Sogeclair SA |
Credit Agricole and Sogeclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Agricole and Sogeclair
The main advantage of trading using opposite Credit Agricole and Sogeclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole position performs unexpectedly, Sogeclair 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 Sogeclair will offset losses from the drop in Sogeclair's long position.| Credit Agricole vs. Societe Generale SA | Credit Agricole vs. BNP Paribas SA | Credit Agricole vs. AXA SA | Credit Agricole vs. Orange SA |
| Sogeclair vs. LVMH Mot Hennessy | Sogeclair vs. LOreal SA | Sogeclair vs. Hermes International SCA | Sogeclair 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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