Correlation Between Compagnie and Artois Nom
Can any of the company-specific risk be diversified away by investing in both Compagnie and Artois Nom 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 Compagnie and Artois Nom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie du Cambodge and Artois Nom, you can compare the effects of market volatilities on Compagnie and Artois Nom 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 Compagnie with a short position of Artois Nom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie and Artois Nom.
Diversification Opportunities for Compagnie and Artois Nom
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Compagnie and Artois is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie du Cambodge and Artois Nom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artois Nom and Compagnie 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 Compagnie du Cambodge are associated (or correlated) with Artois Nom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artois Nom has no effect on the direction of Compagnie i.e., Compagnie and Artois Nom go up and down completely randomly.
Pair Corralation between Compagnie and Artois Nom
Assuming the 90 days trading horizon Compagnie du Cambodge is expected to generate 78.27 times more return on investment than Artois Nom. However, Compagnie is 78.27 times more volatile than Artois Nom. It trades about 0.37 of its potential returns per unit of risk. Artois Nom is currently generating about 0.09 per unit of risk. If you would invest 675,000 in Compagnie du Cambodge on November 5, 2024 and sell it today you would lose (662,590) from holding Compagnie du Cambodge or give up 98.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Compagnie du Cambodge vs. Artois Nom
Performance |
| Timeline |
| Compagnie du Cambodge |
| Artois Nom |
Compagnie and Artois Nom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie and Artois Nom
The main advantage of trading using opposite Compagnie and Artois Nom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie position performs unexpectedly, Artois Nom 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 Artois Nom will offset losses from the drop in Artois Nom's long position.| Compagnie vs. Hitechpros | Compagnie vs. Air France KLM SA | Compagnie vs. Exail Technologies SA | Compagnie vs. ZCCM Investments Holdings |
| Artois Nom vs. Compagnie du Cambodge | Artois Nom vs. Burelle SA | Artois Nom vs. Compagnie de lOdet | Artois Nom vs. Altareit |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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