Correlation Between Sogeclair and Klepierre
Can any of the company-specific risk be diversified away by investing in both Sogeclair and Klepierre 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 Klepierre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sogeclair SA and Klepierre SA, you can compare the effects of market volatilities on Sogeclair and Klepierre 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 Klepierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sogeclair and Klepierre.
Diversification Opportunities for Sogeclair and Klepierre
Excellent diversification
The 3 months correlation between Sogeclair and Klepierre is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sogeclair SA and Klepierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klepierre SA 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 Klepierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klepierre SA has no effect on the direction of Sogeclair i.e., Sogeclair and Klepierre go up and down completely randomly.
Pair Corralation between Sogeclair and Klepierre
Assuming the 90 days trading horizon Sogeclair SA is expected to generate 2.68 times more return on investment than Klepierre. However, Sogeclair is 2.68 times more volatile than Klepierre SA. It trades about 0.11 of its potential returns per unit of risk. Klepierre SA is currently generating about 0.01 per unit of risk. If you would invest 1,745 in Sogeclair SA on October 26, 2024 and sell it today you would earn a total of 85.00 from holding Sogeclair SA or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sogeclair SA vs. Klepierre SA
Performance |
| Timeline |
| Sogeclair SA |
| Klepierre SA |
Sogeclair and Klepierre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sogeclair and Klepierre
The main advantage of trading using opposite Sogeclair and Klepierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sogeclair position performs unexpectedly, Klepierre 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 Klepierre will offset losses from the drop in Klepierre's long position.| Sogeclair vs. Sartorius Stedim Biotech | Sogeclair vs. Kaufman Et Broad | Sogeclair vs. Media 6 SA | Sogeclair vs. Odyssee Technologies 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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