Correlation Between Cogra 48 and VEOM Group
Can any of the company-specific risk be diversified away by investing in both Cogra 48 and VEOM Group 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 VEOM Group 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 VEOM Group SA, you can compare the effects of market volatilities on Cogra 48 and VEOM Group 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 VEOM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogra 48 and VEOM Group.
Diversification Opportunities for Cogra 48 and VEOM Group
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cogra and VEOM is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cogra 48 Socit and VEOM Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEOM Group SA 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 VEOM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEOM Group SA has no effect on the direction of Cogra 48 i.e., Cogra 48 and VEOM Group go up and down completely randomly.
Pair Corralation between Cogra 48 and VEOM Group
Assuming the 90 days trading horizon Cogra 48 is expected to generate 6.68 times less return on investment than VEOM Group. But when comparing it to its historical volatility, Cogra 48 Socit is 4.55 times less risky than VEOM Group. It trades about 0.14 of its potential returns per unit of risk. VEOM Group SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 11.00 in VEOM Group SA on October 25, 2024 and sell it today you would earn a total of 4.00 from holding VEOM Group SA or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogra 48 Socit vs. VEOM Group SA
Performance |
| Timeline |
| Cogra 48 Socit |
| VEOM Group SA |
Cogra 48 and VEOM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogra 48 and VEOM Group
The main advantage of trading using opposite Cogra 48 and VEOM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogra 48 position performs unexpectedly, VEOM Group 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 VEOM Group will offset losses from the drop in VEOM Group's long position.| Cogra 48 vs. Moulinvest | Cogra 48 vs. Poujoulat SA | Cogra 48 vs. Delfingen | Cogra 48 vs. Jacquet Metal Service |
| VEOM Group vs. Linedata Services SA | VEOM Group vs. Pullup Entertainment Socit | VEOM Group vs. Les Hotels Bav | VEOM Group vs. Invibes Advertising NV |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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