Correlation Between Immersion and Artois Nom
Can any of the company-specific risk be diversified away by investing in both Immersion and Artois Nom 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 Immersion and Artois Nom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immersion SA and Artois Nom, you can compare the effects of market volatilities on Immersion and Artois Nom 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 Immersion with a short position of Artois Nom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immersion and Artois Nom.
Diversification Opportunities for Immersion and Artois Nom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Immersion and Artois is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Immersion SA and Artois Nom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artois Nom and Immersion 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 Immersion SA are associated (or correlated) with Artois Nom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artois Nom has no effect on the direction of Immersion i.e., Immersion and Artois Nom go up and down completely randomly.
Pair Corralation between Immersion and Artois Nom
If you would invest 1,090,000 in Artois Nom on November 9, 2024 and sell it today you would earn a total of 100,000 from holding Artois Nom or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 9.09% |
| Values | Daily Returns |
Immersion SA vs. Artois Nom
Performance |
| Timeline |
| Immersion SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Artois Nom |
Immersion and Artois Nom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immersion and Artois Nom
The main advantage of trading using opposite Immersion and Artois Nom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immersion position performs unexpectedly, Artois Nom 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 Artois Nom will offset losses from the drop in Artois Nom's long position.The idea behind Immersion SA and Artois Nom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Artois Nom vs. Compagnie du Cambodge | Artois Nom vs. Burelle SA | Artois Nom vs. Compagnie de lOdet | Artois Nom vs. Altareit |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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