Correlation Between Damartex and Clasquin
Can any of the company-specific risk be diversified away by investing in both Damartex and Clasquin 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 Damartex and Clasquin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damartex and Clasquin, you can compare the effects of market volatilities on Damartex and Clasquin 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 Damartex with a short position of Clasquin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damartex and Clasquin.
Diversification Opportunities for Damartex and Clasquin
Poor diversification
The 3 months correlation between Damartex and Clasquin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Damartex and Clasquin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clasquin and Damartex 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 Damartex are associated (or correlated) with Clasquin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clasquin has no effect on the direction of Damartex i.e., Damartex and Clasquin go up and down completely randomly.
Pair Corralation between Damartex and Clasquin
Assuming the 90 days trading horizon Damartex is expected to generate 15.16 times more return on investment than Clasquin. However, Damartex is 15.16 times more volatile than Clasquin. It trades about 0.24 of its potential returns per unit of risk. Clasquin is currently generating about 0.19 per unit of risk. If you would invest 340.00 in Damartex on September 12, 2024 and sell it today you would earn a total of 226.00 from holding Damartex or generate 66.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Damartex vs. Clasquin
Performance |
| Timeline |
| Damartex |
| Clasquin |
Damartex and Clasquin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damartex and Clasquin
The main advantage of trading using opposite Damartex and Clasquin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damartex position performs unexpectedly, Clasquin 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 Clasquin will offset losses from the drop in Clasquin's long position.| Damartex vs. Chargeurs SA | Damartex vs. Delfingen | Damartex vs. BigBen Interactive | Damartex vs. Guerbet S A |
| Clasquin vs. Thermador Groupe SA | Clasquin vs. Bastide Le Confort | Clasquin vs. Jacquet Metal Service | Clasquin vs. Chargeurs 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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