Correlation Between Centrale DAchat and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Centrale DAchat and SPDR Barclays 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 Centrale DAchat and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrale dAchat Franaise and SPDR Barclays Euro, you can compare the effects of market volatilities on Centrale DAchat and SPDR Barclays 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 Centrale DAchat with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrale DAchat and SPDR Barclays.
Diversification Opportunities for Centrale DAchat and SPDR Barclays
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centrale and SPDR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Centrale dAchat Franaise and SPDR Barclays Euro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Euro and Centrale DAchat 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 Centrale dAchat Franaise are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Euro has no effect on the direction of Centrale DAchat i.e., Centrale DAchat and SPDR Barclays go up and down completely randomly.
Pair Corralation between Centrale DAchat and SPDR Barclays
Assuming the 90 days trading horizon Centrale dAchat Franaise is expected to generate 6.83 times more return on investment than SPDR Barclays. However, Centrale DAchat is 6.83 times more volatile than SPDR Barclays Euro. It trades about 0.08 of its potential returns per unit of risk. SPDR Barclays Euro is currently generating about 0.31 per unit of risk. If you would invest 800.00 in Centrale dAchat Franaise on November 18, 2024 and sell it today you would earn a total of 14.00 from holding Centrale dAchat Franaise or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centrale dAchat Franaise vs. SPDR Barclays Euro
Performance |
| Timeline |
| Centrale dAchat Franaise |
| SPDR Barclays Euro |
Centrale DAchat and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrale DAchat and SPDR Barclays
The main advantage of trading using opposite Centrale DAchat and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrale DAchat position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Centrale DAchat vs. Vente Unique | Centrale DAchat vs. Groupe Sfpi | Centrale DAchat vs. Cegedim SA | Centrale DAchat vs. SA Catana Group |
| SPDR Barclays vs. Amundi ETF Govies | SPDR Barclays vs. iShares STOXX Europe | SPDR Barclays vs. iShares Global Infrastructure | SPDR Barclays vs. SPDR MSCI World |
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
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |