Correlation Between Stradim Espace and Crosswood
Can any of the company-specific risk be diversified away by investing in both Stradim Espace and Crosswood 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 Stradim Espace and Crosswood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stradim Espace Finances and Crosswood, you can compare the effects of market volatilities on Stradim Espace and Crosswood 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 Stradim Espace with a short position of Crosswood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stradim Espace and Crosswood.
Diversification Opportunities for Stradim Espace and Crosswood
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stradim and Crosswood is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Stradim Espace Finances and Crosswood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crosswood and Stradim Espace 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 Stradim Espace Finances are associated (or correlated) with Crosswood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crosswood has no effect on the direction of Stradim Espace i.e., Stradim Espace and Crosswood go up and down completely randomly.
Pair Corralation between Stradim Espace and Crosswood
Assuming the 90 days trading horizon Stradim Espace Finances is expected to under-perform the Crosswood. In addition to that, Stradim Espace is 1.04 times more volatile than Crosswood. It trades about -0.07 of its total potential returns per unit of risk. Crosswood is currently generating about 0.01 per unit of volatility. If you would invest 885.00 in Crosswood on August 29, 2024 and sell it today you would lose (10.00) from holding Crosswood or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stradim Espace Finances vs. Crosswood
Performance |
| Timeline |
| Stradim Espace Finances |
| Crosswood |
Stradim Espace and Crosswood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stradim Espace and Crosswood
The main advantage of trading using opposite Stradim Espace and Crosswood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stradim Espace position performs unexpectedly, Crosswood 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 Crosswood will offset losses from the drop in Crosswood's long position.| Stradim Espace vs. Covivio SA | Stradim Espace vs. Altarea SCA | Stradim Espace vs. Icade SA | Stradim Espace vs. Gecina SA |
| Crosswood vs. Axway Software | Crosswood vs. Metalliance SA | Crosswood vs. Jacquet Metal Service | Crosswood vs. Linedata Services 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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