Correlation Between Sogeclair and Fill Up
Can any of the company-specific risk be diversified away by investing in both Sogeclair and Fill Up 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 Sogeclair and Fill Up into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sogeclair SA and Fill Up Media, you can compare the effects of market volatilities on Sogeclair and Fill Up 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 Sogeclair with a short position of Fill Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sogeclair and Fill Up.
Diversification Opportunities for Sogeclair and Fill Up
Very poor diversification
The 3 months correlation between Sogeclair and Fill is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sogeclair SA and Fill Up Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fill Up Media and Sogeclair 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 Sogeclair SA are associated (or correlated) with Fill Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fill Up Media has no effect on the direction of Sogeclair i.e., Sogeclair and Fill Up go up and down completely randomly.
Pair Corralation between Sogeclair and Fill Up
Assuming the 90 days trading horizon Sogeclair SA is expected to generate 0.82 times more return on investment than Fill Up. However, Sogeclair SA is 1.22 times less risky than Fill Up. It trades about 0.23 of its potential returns per unit of risk. Fill Up Media is currently generating about 0.16 per unit of risk. If you would invest 1,700 in Sogeclair SA on August 28, 2024 and sell it today you would earn a total of 130.00 from holding Sogeclair SA or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sogeclair SA vs. Fill Up Media
Performance |
| Timeline |
| Sogeclair SA |
| Fill Up Media |
Sogeclair and Fill Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sogeclair and Fill Up
The main advantage of trading using opposite Sogeclair and Fill Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sogeclair position performs unexpectedly, Fill Up 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 Fill Up will offset losses from the drop in Fill Up's long position.| Sogeclair vs. LVMH Mot Hennessy | Sogeclair vs. LOreal SA | Sogeclair vs. Hermes International SCA | Sogeclair vs. Manitou BF 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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