Correlation Between Esker SA and Chargeurs
Can any of the company-specific risk be diversified away by investing in both Esker SA and Chargeurs 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 Esker SA and Chargeurs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esker SA and Chargeurs SA, you can compare the effects of market volatilities on Esker SA and Chargeurs 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 Esker SA with a short position of Chargeurs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esker SA and Chargeurs.
Diversification Opportunities for Esker SA and Chargeurs
Excellent diversification
The 3 months correlation between Esker and Chargeurs is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Esker SA and Chargeurs SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chargeurs SA and Esker SA 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 Esker SA are associated (or correlated) with Chargeurs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chargeurs SA has no effect on the direction of Esker SA i.e., Esker SA and Chargeurs go up and down completely randomly.
Pair Corralation between Esker SA and Chargeurs
Assuming the 90 days trading horizon Esker SA is expected to under-perform the Chargeurs. But the stock apears to be less risky and, when comparing its historical volatility, Esker SA is 8.91 times less risky than Chargeurs. The stock trades about -0.09 of its potential returns per unit of risk. The Chargeurs SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 924.00 in Chargeurs SA on August 31, 2024 and sell it today you would earn a total of 65.00 from holding Chargeurs SA or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Esker SA vs. Chargeurs SA
Performance |
| Timeline |
| Esker SA |
| Chargeurs SA |
Esker SA and Chargeurs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esker SA and Chargeurs
The main advantage of trading using opposite Esker SA and Chargeurs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esker SA position performs unexpectedly, Chargeurs 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 Chargeurs will offset losses from the drop in Chargeurs' long position.| Esker SA vs. Chargeurs SA | Esker SA vs. Straumann Holding AG | Esker SA vs. Manitou BF SA | Esker SA vs. Amundi Index Solutions |
| Chargeurs vs. Derichebourg | Chargeurs vs. Trigano SA | Chargeurs vs. Rubis SCA | Chargeurs vs. BigBen Interactive |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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