Correlation Between Enogia SAS and Oeneo SA
Can any of the company-specific risk be diversified away by investing in both Enogia SAS and Oeneo SA 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 Enogia SAS and Oeneo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enogia SAS and Oeneo SA, you can compare the effects of market volatilities on Enogia SAS and Oeneo SA 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 Enogia SAS with a short position of Oeneo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enogia SAS and Oeneo SA.
Diversification Opportunities for Enogia SAS and Oeneo SA
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Enogia and Oeneo is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Enogia SAS and Oeneo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oeneo SA and Enogia SAS 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 Enogia SAS are associated (or correlated) with Oeneo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oeneo SA has no effect on the direction of Enogia SAS i.e., Enogia SAS and Oeneo SA go up and down completely randomly.
Pair Corralation between Enogia SAS and Oeneo SA
Assuming the 90 days trading horizon Enogia SAS is expected to under-perform the Oeneo SA. In addition to that, Enogia SAS is 1.27 times more volatile than Oeneo SA. It trades about -0.43 of its total potential returns per unit of risk. Oeneo SA is currently generating about 0.02 per unit of volatility. If you would invest 962.00 in Oeneo SA on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Oeneo SA or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enogia SAS vs. Oeneo SA
Performance |
| Timeline |
| Enogia SAS |
| Oeneo SA |
Enogia SAS and Oeneo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enogia SAS and Oeneo SA
The main advantage of trading using opposite Enogia SAS and Oeneo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enogia SAS position performs unexpectedly, Oeneo SA 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 Oeneo SA will offset losses from the drop in Oeneo SA's long position.| Enogia SAS vs. LVMH Mot Hennessy | Enogia SAS vs. LOreal SA | Enogia SAS vs. Hermes International SCA | Enogia SAS vs. Manitou BF SA |
| Oeneo SA vs. Robertet SA | Oeneo SA vs. Virbac SA | Oeneo SA vs. Tonnellerie Francois Freres | Oeneo SA vs. Thermador Groupe 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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