Correlation Between Cogra 48 and Prodways Group
Can any of the company-specific risk be diversified away by investing in both Cogra 48 and Prodways 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 Prodways 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 Prodways Group SA, you can compare the effects of market volatilities on Cogra 48 and Prodways 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 Prodways Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogra 48 and Prodways Group.
Diversification Opportunities for Cogra 48 and Prodways Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cogra and Prodways is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cogra 48 Socit and Prodways Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodways 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 Prodways Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodways Group SA has no effect on the direction of Cogra 48 i.e., Cogra 48 and Prodways Group go up and down completely randomly.
Pair Corralation between Cogra 48 and Prodways Group
Assuming the 90 days trading horizon Cogra 48 Socit is expected to generate 1.6 times more return on investment than Prodways Group. However, Cogra 48 is 1.6 times more volatile than Prodways Group SA. It trades about -0.08 of its potential returns per unit of risk. Prodways Group SA is currently generating about -0.33 per unit of risk. If you would invest 616.00 in Cogra 48 Socit on August 30, 2024 and sell it today you would lose (24.00) from holding Cogra 48 Socit or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogra 48 Socit vs. Prodways Group SA
Performance |
| Timeline |
| Cogra 48 Socit |
| Prodways Group SA |
Cogra 48 and Prodways Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogra 48 and Prodways Group
The main advantage of trading using opposite Cogra 48 and Prodways Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogra 48 position performs unexpectedly, Prodways 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 Prodways Group will offset losses from the drop in Prodways Group's long position.| Cogra 48 vs. Moulinvest | Cogra 48 vs. Poujoulat SA | Cogra 48 vs. Delfingen | Cogra 48 vs. Jacquet Metal Service |
| Prodways Group vs. Balyo SA | Prodways Group vs. Lumibird SA | Prodways Group vs. Chargeurs SA | Prodways Group vs. Figeac Aero 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |