Correlation Between Sogeclair and NRJ
Can any of the company-specific risk be diversified away by investing in both Sogeclair and NRJ 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 NRJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sogeclair SA and NRJ Group, you can compare the effects of market volatilities on Sogeclair and NRJ 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 NRJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sogeclair and NRJ.
Diversification Opportunities for Sogeclair and NRJ
Good diversification
The 3 months correlation between Sogeclair and NRJ is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sogeclair SA and NRJ Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRJ Group 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 NRJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRJ Group has no effect on the direction of Sogeclair i.e., Sogeclair and NRJ go up and down completely randomly.
Pair Corralation between Sogeclair and NRJ
Assuming the 90 days trading horizon Sogeclair is expected to generate 1.47 times less return on investment than NRJ. In addition to that, Sogeclair is 1.66 times more volatile than NRJ Group. It trades about 0.01 of its total potential returns per unit of risk. NRJ Group is currently generating about 0.03 per unit of volatility. If you would invest 601.00 in NRJ Group on November 5, 2024 and sell it today you would earn a total of 93.00 from holding NRJ Group or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sogeclair SA vs. NRJ Group
Performance |
| Timeline |
| Sogeclair SA |
| NRJ Group |
Sogeclair and NRJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sogeclair and NRJ
The main advantage of trading using opposite Sogeclair and NRJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sogeclair position performs unexpectedly, NRJ 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 NRJ will offset losses from the drop in NRJ's long position.| Sogeclair vs. Marie Brizard Wine | Sogeclair vs. ISPD Network SA | Sogeclair vs. Fill Up Media | Sogeclair vs. STMicroelectronics NV |
| NRJ vs. Television Francaise 1 | NRJ vs. Mtropole Tlvision SA | NRJ vs. Haulotte Group SA | NRJ vs. VIEL Cie socit |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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