Correlation Between Gaussin and Edenred SA
Can any of the company-specific risk be diversified away by investing in both Gaussin and Edenred 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 Gaussin and Edenred SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaussin and Edenred SA, you can compare the effects of market volatilities on Gaussin and Edenred 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 Gaussin with a short position of Edenred SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaussin and Edenred SA.
Diversification Opportunities for Gaussin and Edenred SA
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gaussin and Edenred is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gaussin and Edenred SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edenred SA and Gaussin 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 Gaussin are associated (or correlated) with Edenred SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edenred SA has no effect on the direction of Gaussin i.e., Gaussin and Edenred SA go up and down completely randomly.
Pair Corralation between Gaussin and Edenred SA
If you would invest 11.00 in Gaussin on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Gaussin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaussin vs. Edenred SA
Performance |
| Timeline |
| Gaussin |
| Edenred SA |
Gaussin and Edenred SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaussin and Edenred SA
The main advantage of trading using opposite Gaussin and Edenred SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaussin position performs unexpectedly, Edenred 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 Edenred SA will offset losses from the drop in Edenred SA's long position.| Gaussin vs. Europlasma SA | Gaussin vs. Novacyt | Gaussin vs. Drone Volt SA | Gaussin vs. Blockchain Group SA |
| Edenred SA vs. Bureau Veritas SA | Edenred SA vs. Sodexo SA | Edenred SA vs. Legrand SA | Edenred SA vs. Accor S A |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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