Correlation Between Cboe UK and Compagnie Plastic
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By analyzing existing cross correlation between Cboe UK Consumer and Compagnie Plastic Omnium, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Compagnie Plastic.
Diversification Opportunities for Cboe UK and Compagnie Plastic
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cboe and Compagnie is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer 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 Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Cboe UK and Compagnie Plastic
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.4 times more return on investment than Compagnie Plastic. However, Cboe UK Consumer is 2.51 times less risky than Compagnie Plastic. It trades about 0.08 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.02 per unit of risk. If you would invest 2,228,800 in Cboe UK Consumer on August 30, 2024 and sell it today you would earn a total of 1,032,447 from holding Cboe UK Consumer or generate 46.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.22% |
| Values | Daily Returns |
Cboe UK Consumer vs. Compagnie Plastic Omnium
Performance |
| Timeline |
Cboe UK and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Compagnie Plastic Omnium
Pair trading matchups for Compagnie Plastic
Pair Trading with Cboe UK and Compagnie Plastic
The main advantage of trading using opposite Cboe UK and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Liberty Media Corp | Cboe UK vs. XLMedia PLC | Cboe UK vs. Scandinavian Tobacco Group | Cboe UK vs. Catena Media PLC |
| Compagnie Plastic vs. Lendinvest PLC | Compagnie Plastic vs. Neometals | Compagnie Plastic vs. Albion Technology General | Compagnie Plastic vs. Jupiter Fund Management |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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