Correlation Between ATEME SA and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both ATEME SA and Credit Agricole 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 ATEME SA and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATEME SA and Credit Agricole SA, you can compare the effects of market volatilities on ATEME SA and Credit Agricole 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 ATEME SA with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATEME SA and Credit Agricole.
Diversification Opportunities for ATEME SA and Credit Agricole
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATEME and Credit is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ATEME SA and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and ATEME 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 ATEME SA are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of ATEME SA i.e., ATEME SA and Credit Agricole go up and down completely randomly.
Pair Corralation between ATEME SA and Credit Agricole
Assuming the 90 days trading horizon ATEME SA is expected to generate 3.78 times more return on investment than Credit Agricole. However, ATEME SA is 3.78 times more volatile than Credit Agricole SA. It trades about 0.21 of its potential returns per unit of risk. Credit Agricole SA is currently generating about 0.23 per unit of risk. If you would invest 440.00 in ATEME SA on October 23, 2024 and sell it today you would earn a total of 140.00 from holding ATEME SA or generate 31.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
ATEME SA vs. Credit Agricole SA
Performance |
| Timeline |
| ATEME SA |
| Credit Agricole SA |
ATEME SA and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATEME SA and Credit Agricole
The main advantage of trading using opposite ATEME SA and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATEME SA position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.| ATEME SA vs. Credit Agricole SA | ATEME SA vs. BEBO Health SA | ATEME SA vs. Kaufman Et Broad | ATEME SA vs. Gaztransport Technigaz SAS |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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