Correlation Between DATANG INTL and Crdit Agricole
Can any of the company-specific risk be diversified away by investing in both DATANG INTL and Crdit 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 DATANG INTL and Crdit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATANG INTL POW and Crdit Agricole SA, you can compare the effects of market volatilities on DATANG INTL and Crdit 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 DATANG INTL with a short position of Crdit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATANG INTL and Crdit Agricole.
Diversification Opportunities for DATANG INTL and Crdit Agricole
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between DATANG and Crdit is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DATANG INTL POW and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA and DATANG INTL 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 DATANG INTL POW are associated (or correlated) with Crdit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of DATANG INTL i.e., DATANG INTL and Crdit Agricole go up and down completely randomly.
Pair Corralation between DATANG INTL and Crdit Agricole
Assuming the 90 days trading horizon DATANG INTL is expected to generate 1.47 times less return on investment than Crdit Agricole. In addition to that, DATANG INTL is 2.21 times more volatile than Crdit Agricole SA. It trades about 0.0 of its total potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.01 per unit of volatility. If you would invest 1,304 in Crdit Agricole SA on September 14, 2024 and sell it today you would earn a total of 18.00 from holding Crdit Agricole SA or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATANG INTL POW vs. Crdit Agricole SA
Performance |
| Timeline |
| DATANG INTL POW |
| Crdit Agricole SA |
DATANG INTL and Crdit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATANG INTL and Crdit Agricole
The main advantage of trading using opposite DATANG INTL and Crdit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATANG INTL position performs unexpectedly, Crdit 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 Crdit Agricole will offset losses from the drop in Crdit Agricole's long position.| DATANG INTL vs. PLAYSTUDIOS A DL 0001 | DATANG INTL vs. PROSIEBENSAT1 MEDIADR4 | DATANG INTL vs. JD SPORTS FASH | DATANG INTL vs. PLAYTIKA HOLDING DL 01 |
| Crdit Agricole vs. Datadog | Crdit Agricole vs. BURLINGTON STORES | Crdit Agricole vs. QURATE RETAIL INC | Crdit Agricole vs. DATANG INTL POW |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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