Correlation Between Centaur Media and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Compagnie Plastic 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 Centaur Media and Compagnie Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Compagnie Plastic Omnium, you can compare the effects of market volatilities on Centaur Media 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 Centaur Media with a short position of Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Compagnie Plastic.
Diversification Opportunities for Centaur Media and Compagnie Plastic
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centaur and Compagnie is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media 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 Centaur Media 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 Centaur Media 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 Centaur Media i.e., Centaur Media and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Centaur Media and Compagnie Plastic
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the Compagnie Plastic. In addition to that, Centaur Media is 1.01 times more volatile than Compagnie Plastic Omnium. It trades about -0.01 of its total potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.01 per unit of volatility. If you would invest 1,271 in Compagnie Plastic Omnium on September 19, 2024 and sell it today you would lose (275.00) from holding Compagnie Plastic Omnium or give up 21.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Centaur Media vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Centaur Media |
| Compagnie Plastic Omnium |
Centaur Media and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Compagnie Plastic
The main advantage of trading using opposite Centaur Media and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media 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.| Centaur Media vs. Lindsell Train Investment | Centaur Media vs. Norman Broadbent Plc | Centaur Media vs. Kaufman Et Broad | Centaur Media vs. Capital Drilling |
| Compagnie Plastic vs. Samsung Electronics Co | Compagnie Plastic vs. Samsung Electronics Co | Compagnie Plastic vs. Hyundai Motor | Compagnie Plastic vs. Reliance Industries Ltd |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |