Correlation Between Socit BIC and Caisse Regionale
Can any of the company-specific risk be diversified away by investing in both Socit BIC and Caisse Regionale 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 Socit BIC and Caisse Regionale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Socit BIC SA and Caisse Regionale de, you can compare the effects of market volatilities on Socit BIC and Caisse Regionale 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 Socit BIC with a short position of Caisse Regionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Socit BIC and Caisse Regionale.
Diversification Opportunities for Socit BIC and Caisse Regionale
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Socit and Caisse is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Socit BIC SA and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale and Socit BIC 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 Socit BIC SA are associated (or correlated) with Caisse Regionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Regionale has no effect on the direction of Socit BIC i.e., Socit BIC and Caisse Regionale go up and down completely randomly.
Pair Corralation between Socit BIC and Caisse Regionale
Assuming the 90 days horizon Socit BIC is expected to generate 2.65 times less return on investment than Caisse Regionale. In addition to that, Socit BIC is 1.71 times more volatile than Caisse Regionale de. It trades about 0.03 of its total potential returns per unit of risk. Caisse Regionale de is currently generating about 0.13 per unit of volatility. If you would invest 5,824 in Caisse Regionale de on August 28, 2024 and sell it today you would earn a total of 425.00 from holding Caisse Regionale de or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Socit BIC SA vs. Caisse Regionale de
Performance |
| Timeline |
| Socit BIC SA |
| Caisse Regionale |
Socit BIC and Caisse Regionale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Socit BIC and Caisse Regionale
The main advantage of trading using opposite Socit BIC and Caisse Regionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Socit BIC position performs unexpectedly, Caisse Regionale 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 Caisse Regionale will offset losses from the drop in Caisse Regionale's long position.| Socit BIC vs. Remy Cointreau | Socit BIC vs. Alten SA | Socit BIC vs. Gaztransport Technigaz SAS | Socit BIC vs. Trigano SA |
| Caisse Regionale vs. Caisse rgionale de | Caisse Regionale vs. Caisse Regionale de | Caisse Regionale vs. Manitou BF SA | Caisse Regionale vs. Ossiam Minimum Variance |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |