Correlation Between Beeks Trading and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and Compagnie Plastic 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 Beeks Trading and Compagnie Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Compagnie Plastic Omnium, you can compare the effects of market volatilities on Beeks Trading and Compagnie Plastic 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 Beeks Trading with a short position of Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Compagnie Plastic.
Diversification Opportunities for Beeks Trading and Compagnie Plastic
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beeks and Compagnie is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium and Beeks Trading 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 Beeks Trading are associated (or correlated) with Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of Beeks Trading i.e., Beeks Trading and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Beeks Trading and Compagnie Plastic
Assuming the 90 days trading horizon Beeks Trading is expected to under-perform the Compagnie Plastic. In addition to that, Beeks Trading is 1.53 times more volatile than Compagnie Plastic Omnium. It trades about -0.15 of its total potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about 0.18 per unit of volatility. If you would invest 988.00 in Compagnie Plastic Omnium on October 11, 2024 and sell it today you would earn a total of 55.00 from holding Compagnie Plastic Omnium or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beeks Trading vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Beeks Trading |
| Compagnie Plastic Omnium |
Beeks Trading and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Compagnie Plastic
The main advantage of trading using opposite Beeks Trading and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, Compagnie Plastic 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 Plastic will offset losses from the drop in Compagnie Plastic's long position.| Beeks Trading vs. Charter Communications Cl | Beeks Trading vs. Zoom Video Communications | Beeks Trading vs. Creo Medical Group | Beeks Trading vs. Tata Steel Limited |
| Compagnie Plastic vs. Axway Software SA | Compagnie Plastic vs. MoneysupermarketCom Group PLC | Compagnie Plastic vs. Fevertree Drinks Plc | Compagnie Plastic vs. Spotify Technology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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