Correlation Between Amoeba SA and Caisse Regionale
Can any of the company-specific risk be diversified away by investing in both Amoeba SA and Caisse Regionale 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 Amoeba SA and Caisse Regionale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amoeba SA and Caisse Regionale de, you can compare the effects of market volatilities on Amoeba SA and Caisse Regionale 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 Amoeba SA with a short position of Caisse Regionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amoeba SA and Caisse Regionale.
Diversification Opportunities for Amoeba SA and Caisse Regionale
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amoeba and Caisse is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amoeba SA and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale and Amoeba 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 Amoeba SA are associated (or correlated) with Caisse Regionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Regionale has no effect on the direction of Amoeba SA i.e., Amoeba SA and Caisse Regionale go up and down completely randomly.
Pair Corralation between Amoeba SA and Caisse Regionale
Assuming the 90 days trading horizon Amoeba SA is expected to generate 2.53 times more return on investment than Caisse Regionale. However, Amoeba SA is 2.53 times more volatile than Caisse Regionale de. It trades about 0.38 of its potential returns per unit of risk. Caisse Regionale de is currently generating about 0.13 per unit of risk. If you would invest 50.00 in Amoeba SA on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Amoeba SA or generate 68.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amoeba SA vs. Caisse Regionale de
Performance |
| Timeline |
| Amoeba SA |
| Caisse Regionale |
Amoeba SA and Caisse Regionale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amoeba SA and Caisse Regionale
The main advantage of trading using opposite Amoeba SA and Caisse Regionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amoeba SA position performs unexpectedly, Caisse Regionale 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 Caisse Regionale will offset losses from the drop in Caisse Regionale's long position.| Amoeba SA vs. Jacques Bogart SA | Amoeba SA vs. Piscines Desjoyaux SA | Amoeba SA vs. Plastiques du Val | Amoeba SA vs. Robertet SA |
| Caisse Regionale vs. Caisse rgionale de | Caisse Regionale vs. Caisse Regionale de | Caisse Regionale vs. Manitou BF SA | Caisse Regionale vs. Ossiam Minimum Variance |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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