Correlation Between Bilendi and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both Bilendi and Credit Agricole 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 Bilendi and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilendi and Credit Agricole SA, you can compare the effects of market volatilities on Bilendi and Credit Agricole 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 Bilendi with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilendi and Credit Agricole.
Diversification Opportunities for Bilendi and Credit Agricole
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bilendi and Credit is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bilendi and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and Bilendi 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 Bilendi are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of Bilendi i.e., Bilendi and Credit Agricole go up and down completely randomly.
Pair Corralation between Bilendi and Credit Agricole
Assuming the 90 days trading horizon Bilendi is expected to generate 2.96 times less return on investment than Credit Agricole. In addition to that, Bilendi is 1.75 times more volatile than Credit Agricole SA. It trades about 0.01 of its total potential returns per unit of risk. Credit Agricole SA is currently generating about 0.06 per unit of volatility. If you would invest 1,123 in Credit Agricole SA on August 26, 2024 and sell it today you would earn a total of 182.00 from holding Credit Agricole SA or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilendi vs. Credit Agricole SA
Performance |
| Timeline |
| Bilendi |
| Credit Agricole SA |
Bilendi and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilendi and Credit Agricole
The main advantage of trading using opposite Bilendi and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilendi position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.| Bilendi vs. Vallourec | Bilendi vs. Genfit | Bilendi vs. Innate Pharma | Bilendi vs. Etablissements Maurel et |
| Credit Agricole vs. BNP Paribas SA | Credit Agricole vs. AXA SA | Credit Agricole vs. Orange SA | Credit Agricole vs. Carrefour 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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