Correlation Between Capgemini and Entreprendre
Can any of the company-specific risk be diversified away by investing in both Capgemini and Entreprendre 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 Capgemini and Entreprendre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capgemini SE and Entreprendre, you can compare the effects of market volatilities on Capgemini and Entreprendre 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 Capgemini with a short position of Entreprendre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and Entreprendre.
Diversification Opportunities for Capgemini and Entreprendre
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capgemini and Entreprendre is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and Entreprendre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entreprendre and Capgemini 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 Capgemini SE are associated (or correlated) with Entreprendre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entreprendre has no effect on the direction of Capgemini i.e., Capgemini and Entreprendre go up and down completely randomly.
Pair Corralation between Capgemini and Entreprendre
If you would invest 444.00 in Entreprendre on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Entreprendre or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Capgemini SE vs. Entreprendre
Performance |
| Timeline |
| Capgemini SE |
| Entreprendre |
Capgemini and Entreprendre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capgemini and Entreprendre
The main advantage of trading using opposite Capgemini and Entreprendre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capgemini position performs unexpectedly, Entreprendre 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 Entreprendre will offset losses from the drop in Entreprendre's long position.| Capgemini vs. Atos SE | Capgemini vs. Compagnie de Saint Gobain | Capgemini vs. Pernod Ricard SA | Capgemini vs. Bouygues SA |
| Entreprendre vs. Lexibook Linguistic Electronic | Entreprendre vs. Kumulus Vape SA | Entreprendre vs. Manitou BF SA | Entreprendre vs. Ossiam Minimum Variance |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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