Correlation Between Cogra 48 and Delfingen
Can any of the company-specific risk be diversified away by investing in both Cogra 48 and Delfingen 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 Cogra 48 and Delfingen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogra 48 Socit and Delfingen, you can compare the effects of market volatilities on Cogra 48 and Delfingen 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 Cogra 48 with a short position of Delfingen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogra 48 and Delfingen.
Diversification Opportunities for Cogra 48 and Delfingen
Modest diversification
The 3 months correlation between Cogra and Delfingen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cogra 48 Socit and Delfingen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delfingen and Cogra 48 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 Cogra 48 Socit are associated (or correlated) with Delfingen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delfingen has no effect on the direction of Cogra 48 i.e., Cogra 48 and Delfingen go up and down completely randomly.
Pair Corralation between Cogra 48 and Delfingen
Assuming the 90 days trading horizon Cogra 48 Socit is expected to under-perform the Delfingen. But the stock apears to be less risky and, when comparing its historical volatility, Cogra 48 Socit is 1.57 times less risky than Delfingen. The stock trades about -0.05 of its potential returns per unit of risk. The Delfingen is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Delfingen on October 23, 2024 and sell it today you would earn a total of 225.00 from holding Delfingen or generate 16.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
Cogra 48 Socit vs. Delfingen
Performance |
| Timeline |
| Cogra 48 Socit |
| Delfingen |
Cogra 48 and Delfingen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogra 48 and Delfingen
The main advantage of trading using opposite Cogra 48 and Delfingen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogra 48 position performs unexpectedly, Delfingen 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 Delfingen will offset losses from the drop in Delfingen's long position.| Cogra 48 vs. Moulinvest | Cogra 48 vs. Poujoulat SA | Cogra 48 vs. Delfingen | Cogra 48 vs. Jacquet Metal Service |
| Delfingen vs. Akwel SA | Delfingen vs. Groupe Guillin SA | Delfingen vs. Burelle SA | Delfingen vs. SA Catana Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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