Correlation Between Theradiag and Cofidur SA
Can any of the company-specific risk be diversified away by investing in both Theradiag and Cofidur 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 Theradiag and Cofidur SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Theradiag SA and Cofidur SA, you can compare the effects of market volatilities on Theradiag and Cofidur 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 Theradiag with a short position of Cofidur SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Theradiag and Cofidur SA.
Diversification Opportunities for Theradiag and Cofidur SA
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Theradiag and Cofidur is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Theradiag SA and Cofidur SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofidur SA and Theradiag 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 Theradiag SA are associated (or correlated) with Cofidur SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofidur SA has no effect on the direction of Theradiag i.e., Theradiag and Cofidur SA go up and down completely randomly.
Pair Corralation between Theradiag and Cofidur SA
Assuming the 90 days trading horizon Theradiag SA is expected to under-perform the Cofidur SA. In addition to that, Theradiag is 1.01 times more volatile than Cofidur SA. It trades about -0.03 of its total potential returns per unit of risk. Cofidur SA is currently generating about 0.03 per unit of volatility. If you would invest 29,390 in Cofidur SA on August 25, 2024 and sell it today you would earn a total of 4,410 from holding Cofidur SA or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.54% |
| Values | Daily Returns |
Theradiag SA vs. Cofidur SA
Performance |
| Timeline |
| Theradiag SA |
| Cofidur SA |
Theradiag and Cofidur SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Theradiag and Cofidur SA
The main advantage of trading using opposite Theradiag and Cofidur SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Theradiag position performs unexpectedly, Cofidur 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 Cofidur SA will offset losses from the drop in Cofidur SA's long position.| Theradiag vs. Biomerieux SA | Theradiag vs. Eurofins Scientific SE | Theradiag vs. Sartorius Stedim Biotech | Theradiag vs. SEB SA |
| Cofidur SA vs. Passat Socit Anonyme | Cofidur SA vs. Groupe Guillin SA | Cofidur SA vs. Gevelot | Cofidur SA vs. DLSI |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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