Correlation Between Compagnie and Getlink SE
Can any of the company-specific risk be diversified away by investing in both Compagnie and Getlink SE 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 Getlink SE 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 Getlink SE, you can compare the effects of market volatilities on Compagnie and Getlink SE 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 Getlink SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie and Getlink SE.
Diversification Opportunities for Compagnie and Getlink SE
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compagnie and Getlink is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie du Cambodge and Getlink SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getlink SE 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 Getlink SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getlink SE has no effect on the direction of Compagnie i.e., Compagnie and Getlink SE go up and down completely randomly.
Pair Corralation between Compagnie and Getlink SE
Assuming the 90 days trading horizon Compagnie du Cambodge is expected to generate 368.61 times more return on investment than Getlink SE. However, Compagnie is 368.61 times more volatile than Getlink SE. It trades about 0.43 of its potential returns per unit of risk. Getlink SE is currently generating about -0.01 per unit of risk. If you would invest 645,000 in Compagnie du Cambodge on August 26, 2024 and sell it today you would lose (635,500) from holding Compagnie du Cambodge or give up 98.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Compagnie du Cambodge vs. Getlink SE
Performance |
| Timeline |
| Compagnie du Cambodge |
| Getlink SE |
Compagnie and Getlink SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie and Getlink SE
The main advantage of trading using opposite Compagnie and Getlink SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie position performs unexpectedly, Getlink SE 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 Getlink SE will offset losses from the drop in Getlink SE's long position.| Compagnie vs. Getlink SE | Compagnie vs. Manitou BF SA | Compagnie vs. Ossiam Minimum Variance | Compagnie vs. Granite 3x LVMH |
| Getlink SE vs. Manitou BF SA | Getlink SE vs. Ossiam Minimum Variance | Getlink SE vs. Granite 3x LVMH | Getlink SE vs. 21Shares Polkadot ETP |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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