Correlation Between Credit Agricole and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Credit Agricole and BEBO Health 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 BEBO Health 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 BEBO Health SA, you can compare the effects of market volatilities on Credit Agricole and BEBO Health 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 BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and BEBO Health.
Diversification Opportunities for Credit Agricole and BEBO Health
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Credit and BEBO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole SA and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health 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 BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Credit Agricole i.e., Credit Agricole and BEBO Health go up and down completely randomly.
Pair Corralation between Credit Agricole and BEBO Health
If you would invest 1,302 in Credit Agricole SA on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Credit Agricole SA or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Agricole SA vs. BEBO Health SA
Performance |
| Timeline |
| Credit Agricole SA |
| BEBO Health SA |
Credit Agricole and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Agricole and BEBO Health
The main advantage of trading using opposite Credit Agricole and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health'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 |
| BEBO Health vs. Seche Environnem | BEBO Health vs. X Fab Silicon | BEBO Health vs. Fiducial Office Solutions | BEBO Health vs. Linedata Services 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |