Correlation Between Credit Agricole and Malteries Franco
Can any of the company-specific risk be diversified away by investing in both Credit Agricole and Malteries Franco 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 Malteries Franco 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 Malteries Franco Belges Socit, you can compare the effects of market volatilities on Credit Agricole and Malteries Franco 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 Malteries Franco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and Malteries Franco.
Diversification Opportunities for Credit Agricole and Malteries Franco
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Credit and Malteries is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole SA and Malteries Franco Belges Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malteries Franco Belges 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 Malteries Franco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malteries Franco Belges has no effect on the direction of Credit Agricole i.e., Credit Agricole and Malteries Franco go up and down completely randomly.
Pair Corralation between Credit Agricole and Malteries Franco
Assuming the 90 days trading horizon Credit Agricole SA is expected to under-perform the Malteries Franco. In addition to that, Credit Agricole is 1.08 times more volatile than Malteries Franco Belges Socit. It trades about -0.39 of its total potential returns per unit of risk. Malteries Franco Belges Socit is currently generating about 0.19 per unit of volatility. If you would invest 68,500 in Malteries Franco Belges Socit on August 30, 2024 and sell it today you would earn a total of 3,500 from holding Malteries Franco Belges Socit or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Agricole SA vs. Malteries Franco Belges Socit
Performance |
| Timeline |
| Credit Agricole SA |
| Malteries Franco Belges |
Credit Agricole and Malteries Franco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Agricole and Malteries Franco
The main advantage of trading using opposite Credit Agricole and Malteries Franco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole position performs unexpectedly, Malteries Franco 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 Malteries Franco will offset losses from the drop in Malteries Franco'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 |
| Malteries Franco vs. Grard Perrier Industrie | Malteries Franco vs. Robertet SA | Malteries Franco vs. Thermador Groupe SA | Malteries Franco vs. Piscines Desjoyaux 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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