Correlation Between Energisme and Vivendi SA
Can any of the company-specific risk be diversified away by investing in both Energisme and Vivendi 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 Energisme and Vivendi SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisme and Vivendi SA, you can compare the effects of market volatilities on Energisme and Vivendi 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 Energisme with a short position of Vivendi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisme and Vivendi SA.
Diversification Opportunities for Energisme and Vivendi SA
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Energisme and Vivendi is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Energisme and Vivendi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SA and Energisme 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 Energisme are associated (or correlated) with Vivendi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SA has no effect on the direction of Energisme i.e., Energisme and Vivendi SA go up and down completely randomly.
Pair Corralation between Energisme and Vivendi SA
Assuming the 90 days trading horizon Energisme is expected to under-perform the Vivendi SA. In addition to that, Energisme is 2.94 times more volatile than Vivendi SA. It trades about -0.27 of its total potential returns per unit of risk. Vivendi SA is currently generating about -0.38 per unit of volatility. If you would invest 979.00 in Vivendi SA on September 1, 2024 and sell it today you would lose (110.00) from holding Vivendi SA or give up 11.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Energisme vs. Vivendi SA
Performance |
| Timeline |
| Energisme |
| Vivendi SA |
Energisme and Vivendi SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energisme and Vivendi SA
The main advantage of trading using opposite Energisme and Vivendi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisme position performs unexpectedly, Vivendi 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 Vivendi SA will offset losses from the drop in Vivendi SA's long position.| Energisme vs. Kerlink SAS | Energisme vs. Nacon Sa | Energisme vs. Agripower France Sa | Energisme vs. Hydrogen Refueling Solutions |
| Vivendi SA vs. Vinci SA | Vivendi SA vs. Compagnie de Saint Gobain | Vivendi SA vs. Bouygues SA | Vivendi SA vs. Carrefour SA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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