Correlation Between Artois Nom and Compagnie
Can any of the company-specific risk be diversified away by investing in both Artois Nom and Compagnie 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 Artois Nom and Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artois Nom and Compagnie de Saint Gobain, you can compare the effects of market volatilities on Artois Nom and Compagnie 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 Artois Nom with a short position of Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artois Nom and Compagnie.
Diversification Opportunities for Artois Nom and Compagnie
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artois and Compagnie is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Artois Nom and Compagnie de Saint Gobain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Saint and Artois Nom 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 Artois Nom are associated (or correlated) with Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Saint has no effect on the direction of Artois Nom i.e., Artois Nom and Compagnie go up and down completely randomly.
Pair Corralation between Artois Nom and Compagnie
Assuming the 90 days trading horizon Artois Nom is expected to generate 2.67 times more return on investment than Compagnie. However, Artois Nom is 2.67 times more volatile than Compagnie de Saint Gobain. It trades about 0.06 of its potential returns per unit of risk. Compagnie de Saint Gobain is currently generating about 0.1 per unit of risk. If you would invest 466,823 in Artois Nom on August 27, 2024 and sell it today you would earn a total of 483,177 from holding Artois Nom or generate 103.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Artois Nom vs. Compagnie de Saint Gobain
Performance |
| Timeline |
| Artois Nom |
| Compagnie de Saint |
Artois Nom and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artois Nom and Compagnie
The main advantage of trading using opposite Artois Nom and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artois Nom position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| Artois Nom vs. Compagnie du Cambodge | Artois Nom vs. Burelle SA | Artois Nom vs. Compagnie de lOdet | Artois Nom vs. Altareit |
| Compagnie vs. Vinci SA | Compagnie vs. Air Liquide SA | Compagnie vs. Compagnie Generale des | Compagnie vs. Bouygues 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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