Correlation Between Cofidur SA and Media 6
Can any of the company-specific risk be diversified away by investing in both Cofidur SA and Media 6 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 Cofidur SA and Media 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cofidur SA and Media 6 SA, you can compare the effects of market volatilities on Cofidur SA and Media 6 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 Cofidur SA with a short position of Media 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofidur SA and Media 6.
Diversification Opportunities for Cofidur SA and Media 6
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cofidur and Media is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cofidur SA and Media 6 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media 6 SA and Cofidur SA 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 Cofidur SA are associated (or correlated) with Media 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media 6 SA has no effect on the direction of Cofidur SA i.e., Cofidur SA and Media 6 go up and down completely randomly.
Pair Corralation between Cofidur SA and Media 6
Assuming the 90 days trading horizon Cofidur SA is expected to generate 0.35 times more return on investment than Media 6. However, Cofidur SA is 2.89 times less risky than Media 6. It trades about 0.01 of its potential returns per unit of risk. Media 6 SA is currently generating about -0.01 per unit of risk. If you would invest 32,800 in Cofidur SA on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Cofidur SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cofidur SA vs. Media 6 SA
Performance |
| Timeline |
| Cofidur SA |
| Media 6 SA |
Cofidur SA and Media 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofidur SA and Media 6
The main advantage of trading using opposite Cofidur SA and Media 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofidur SA position performs unexpectedly, Media 6 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 Media 6 will offset losses from the drop in Media 6's long position.| Cofidur SA vs. Passat Socit Anonyme | Cofidur SA vs. Groupe Guillin SA | Cofidur SA vs. Gevelot | Cofidur SA vs. DLSI |
| Media 6 vs. Lacroix Group SA | Media 6 vs. Fiducial Office Solutions | Media 6 vs. ACTEOS SA | Media 6 vs. Passat Socit Anonyme |
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 CEOs Directory module to screen CEOs from public companies around the world.
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