Correlation Between Aubay Socit and Sopra Steria
Can any of the company-specific risk be diversified away by investing in both Aubay Socit and Sopra Steria 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 Aubay Socit and Sopra Steria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aubay Socit Anonyme and Sopra Steria Group, you can compare the effects of market volatilities on Aubay Socit and Sopra Steria 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 Aubay Socit with a short position of Sopra Steria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aubay Socit and Sopra Steria.
Diversification Opportunities for Aubay Socit and Sopra Steria
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aubay and Sopra is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aubay Socit Anonyme and Sopra Steria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sopra Steria Group and Aubay Socit 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 Aubay Socit Anonyme are associated (or correlated) with Sopra Steria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sopra Steria Group has no effect on the direction of Aubay Socit i.e., Aubay Socit and Sopra Steria go up and down completely randomly.
Pair Corralation between Aubay Socit and Sopra Steria
Assuming the 90 days trading horizon Aubay Socit is expected to generate 3.19 times less return on investment than Sopra Steria. But when comparing it to its historical volatility, Aubay Socit Anonyme is 1.12 times less risky than Sopra Steria. It trades about 0.0 of its potential returns per unit of risk. Sopra Steria Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 17,294 in Sopra Steria Group on September 2, 2024 and sell it today you would earn a total of 586.00 from holding Sopra Steria Group or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aubay Socit Anonyme vs. Sopra Steria Group
Performance |
| Timeline |
| Aubay Socit Anonyme |
| Sopra Steria Group |
Aubay Socit and Sopra Steria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aubay Socit and Sopra Steria
The main advantage of trading using opposite Aubay Socit and Sopra Steria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aubay Socit position performs unexpectedly, Sopra Steria 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 Sopra Steria will offset losses from the drop in Sopra Steria's long position.| Aubay Socit vs. Neurones | Aubay Socit vs. Infotel SA | Aubay Socit vs. Alten SA | Aubay Socit vs. Wavestone SA |
| Sopra Steria vs. Neurones | Sopra Steria vs. Infotel SA | Sopra Steria vs. Alten SA | Sopra Steria vs. Manitou BF 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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