Correlation Between Campine and Floridienne
Can any of the company-specific risk be diversified away by investing in both Campine and Floridienne 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 Campine and Floridienne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campine and Floridienne, you can compare the effects of market volatilities on Campine and Floridienne 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 Campine with a short position of Floridienne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campine and Floridienne.
Diversification Opportunities for Campine and Floridienne
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Campine and Floridienne is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Campine and Floridienne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floridienne and Campine 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 Campine are associated (or correlated) with Floridienne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floridienne has no effect on the direction of Campine i.e., Campine and Floridienne go up and down completely randomly.
Pair Corralation between Campine and Floridienne
Assuming the 90 days trading horizon Campine is expected to generate 0.87 times more return on investment than Floridienne. However, Campine is 1.15 times less risky than Floridienne. It trades about 0.08 of its potential returns per unit of risk. Floridienne is currently generating about -0.03 per unit of risk. If you would invest 5,548 in Campine on August 31, 2024 and sell it today you would earn a total of 3,402 from holding Campine or generate 61.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.42% |
| Values | Daily Returns |
Campine vs. Floridienne
Performance |
| Timeline |
| Campine |
| Floridienne |
Campine and Floridienne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campine and Floridienne
The main advantage of trading using opposite Campine and Floridienne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campine position performs unexpectedly, Floridienne 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 Floridienne will offset losses from the drop in Floridienne's long position.| Campine vs. Miko NV | Campine vs. Tessenderlo | Campine vs. Van de Velde | Campine vs. EVS Broadcast Equipment |
| Floridienne vs. Brederode SA | Floridienne vs. Compagnie du Bois | Floridienne vs. Ackermans Van Haaren | Floridienne vs. Sofina Socit Anonyme |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |