Correlation Between Caisse Rgionale and Centrale DAchat
Can any of the company-specific risk be diversified away by investing in both Caisse Rgionale and Centrale DAchat 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 Caisse Rgionale and Centrale DAchat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caisse Rgionale de and Centrale dAchat Franaise, you can compare the effects of market volatilities on Caisse Rgionale and Centrale DAchat 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 Caisse Rgionale with a short position of Centrale DAchat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caisse Rgionale and Centrale DAchat.
Diversification Opportunities for Caisse Rgionale and Centrale DAchat
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caisse and Centrale is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Caisse Rgionale de and Centrale dAchat Franaise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrale dAchat Franaise and Caisse Rgionale 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 Caisse Rgionale de are associated (or correlated) with Centrale DAchat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrale dAchat Franaise has no effect on the direction of Caisse Rgionale i.e., Caisse Rgionale and Centrale DAchat go up and down completely randomly.
Pair Corralation between Caisse Rgionale and Centrale DAchat
Assuming the 90 days trading horizon Caisse Rgionale de is expected to generate 0.84 times more return on investment than Centrale DAchat. However, Caisse Rgionale de is 1.2 times less risky than Centrale DAchat. It trades about 0.43 of its potential returns per unit of risk. Centrale dAchat Franaise is currently generating about 0.12 per unit of risk. If you would invest 6,565 in Caisse Rgionale de on November 3, 2024 and sell it today you would earn a total of 712.00 from holding Caisse Rgionale de or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caisse Rgionale de vs. Centrale dAchat Franaise
Performance |
| Timeline |
| Caisse Rgionale de |
| Centrale dAchat Franaise |
Caisse Rgionale and Centrale DAchat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caisse Rgionale and Centrale DAchat
The main advantage of trading using opposite Caisse Rgionale and Centrale DAchat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caisse Rgionale position performs unexpectedly, Centrale DAchat 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 Centrale DAchat will offset losses from the drop in Centrale DAchat's long position.| Caisse Rgionale vs. Caisse Regionale de | Caisse Rgionale vs. Caisse Regionale de | Caisse Rgionale vs. Caisse rgionale de | Caisse Rgionale vs. Manitou BF SA |
| Centrale DAchat vs. Vente Unique | Centrale DAchat vs. Groupe Sfpi | Centrale DAchat vs. Cegedim SA | Centrale DAchat vs. SA Catana Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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