Correlation Between Arkema SA and Arkema SA
Can any of the company-specific risk be diversified away by investing in both Arkema SA and Arkema 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 Arkema SA and Arkema SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arkema SA and Arkema SA ADR, you can compare the effects of market volatilities on Arkema SA and Arkema 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 Arkema SA with a short position of Arkema SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkema SA and Arkema SA.
Diversification Opportunities for Arkema SA and Arkema SA
Good diversification
The 3 months correlation between Arkema and Arkema is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Arkema SA and Arkema SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkema SA ADR and Arkema SA 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 Arkema SA are associated (or correlated) with Arkema SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkema SA ADR has no effect on the direction of Arkema SA i.e., Arkema SA and Arkema SA go up and down completely randomly.
Pair Corralation between Arkema SA and Arkema SA
Assuming the 90 days horizon Arkema SA is expected to generate 0.69 times more return on investment than Arkema SA. However, Arkema SA is 1.45 times less risky than Arkema SA. It trades about -0.09 of its potential returns per unit of risk. Arkema SA ADR is currently generating about -0.07 per unit of risk. If you would invest 10,700 in Arkema SA on August 28, 2024 and sell it today you would lose (1,860) from holding Arkema SA or give up 17.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.48% |
| Values | Daily Returns |
Arkema SA vs. Arkema SA ADR
Performance |
| Timeline |
| Arkema SA |
| Arkema SA ADR |
Arkema SA and Arkema SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkema SA and Arkema SA
The main advantage of trading using opposite Arkema SA and Arkema SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkema SA position performs unexpectedly, Arkema 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 Arkema SA will offset losses from the drop in Arkema SA's long position.| Arkema SA vs. First Graphene | Arkema SA vs. HUMANA INC | Arkema SA vs. Aquagold International | Arkema SA vs. Barloworld Ltd ADR |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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