Correlation Between Crossject and Voltalia
Can any of the company-specific risk be diversified away by investing in both Crossject and Voltalia 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 Crossject and Voltalia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossject and Voltalia SA, you can compare the effects of market volatilities on Crossject and Voltalia 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 Crossject with a short position of Voltalia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossject and Voltalia.
Diversification Opportunities for Crossject and Voltalia
Poor diversification
The 3 months correlation between Crossject and Voltalia is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Crossject and Voltalia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voltalia SA and Crossject 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 Crossject are associated (or correlated) with Voltalia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voltalia SA has no effect on the direction of Crossject i.e., Crossject and Voltalia go up and down completely randomly.
Pair Corralation between Crossject and Voltalia
Assuming the 90 days trading horizon Crossject is expected to generate 1.26 times more return on investment than Voltalia. However, Crossject is 1.26 times more volatile than Voltalia SA. It trades about -0.01 of its potential returns per unit of risk. Voltalia SA is currently generating about -0.04 per unit of risk. If you would invest 342.00 in Crossject on September 3, 2024 and sell it today you would lose (135.00) from holding Crossject or give up 39.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Crossject vs. Voltalia SA
Performance |
| Timeline |
| Crossject |
| Voltalia SA |
Crossject and Voltalia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossject and Voltalia
The main advantage of trading using opposite Crossject and Voltalia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossject position performs unexpectedly, Voltalia 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 Voltalia will offset losses from the drop in Voltalia's long position.| Crossject vs. Quantum Genomics SA | Crossject vs. Biophytis SA | Crossject vs. Biosynex | Crossject vs. Poxel 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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