Correlation Between Amoeba SA and Claranova
Can any of the company-specific risk be diversified away by investing in both Amoeba SA and Claranova 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 Claranova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amoeba SA and Claranova SE, you can compare the effects of market volatilities on Amoeba SA and Claranova 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 Claranova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amoeba SA and Claranova.
Diversification Opportunities for Amoeba SA and Claranova
Very good diversification
The 3 months correlation between Amoeba and Claranova is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Amoeba SA and Claranova SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Claranova SE 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 Claranova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Claranova SE has no effect on the direction of Amoeba SA i.e., Amoeba SA and Claranova go up and down completely randomly.
Pair Corralation between Amoeba SA and Claranova
Assuming the 90 days trading horizon Amoeba SA is expected to generate 1.29 times more return on investment than Claranova. However, Amoeba SA is 1.29 times more volatile than Claranova SE. It trades about 0.39 of its potential returns per unit of risk. Claranova SE is currently generating about -0.03 per unit of risk. If you would invest 62.00 in Amoeba SA on August 28, 2024 and sell it today you would earn a total of 17.00 from holding Amoeba SA or generate 27.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amoeba SA vs. Claranova SE
Performance |
| Timeline |
| Amoeba SA |
| Claranova SE |
Amoeba SA and Claranova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amoeba SA and Claranova
The main advantage of trading using opposite Amoeba SA and Claranova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amoeba SA position performs unexpectedly, Claranova 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 Claranova will offset losses from the drop in Claranova'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 |
| Claranova vs. Linedata Services SA | Claranova vs. Interparfums SA | Claranova vs. Esker SA | Claranova vs. Neurones |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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