Correlation Between CBO Territoria and Patrimoine
Can any of the company-specific risk be diversified away by investing in both CBO Territoria and Patrimoine 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 CBO Territoria and Patrimoine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBO Territoria SA and Patrimoine et Commerce, you can compare the effects of market volatilities on CBO Territoria and Patrimoine 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 CBO Territoria with a short position of Patrimoine. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBO Territoria and Patrimoine.
Diversification Opportunities for CBO Territoria and Patrimoine
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CBO and Patrimoine is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CBO Territoria SA and Patrimoine et Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patrimoine et Commerce and CBO Territoria 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 CBO Territoria SA are associated (or correlated) with Patrimoine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patrimoine et Commerce has no effect on the direction of CBO Territoria i.e., CBO Territoria and Patrimoine go up and down completely randomly.
Pair Corralation between CBO Territoria and Patrimoine
Assuming the 90 days trading horizon CBO Territoria is expected to generate 2.21 times less return on investment than Patrimoine. But when comparing it to its historical volatility, CBO Territoria SA is 2.96 times less risky than Patrimoine. It trades about 0.06 of its potential returns per unit of risk. Patrimoine et Commerce is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,827 in Patrimoine et Commerce on August 27, 2024 and sell it today you would earn a total of 203.00 from holding Patrimoine et Commerce or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBO Territoria SA vs. Patrimoine et Commerce
Performance |
| Timeline |
| CBO Territoria SA |
| Patrimoine et Commerce |
CBO Territoria and Patrimoine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBO Territoria and Patrimoine
The main advantage of trading using opposite CBO Territoria and Patrimoine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBO Territoria position performs unexpectedly, Patrimoine 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 Patrimoine will offset losses from the drop in Patrimoine's long position.| CBO Territoria vs. Fonciere Lyonnaise | CBO Territoria vs. Fonciere Inea | CBO Territoria vs. Immobiliere Dassault SA | CBO Territoria vs. Frey SA |
| Patrimoine vs. CBO Territoria SA | Patrimoine vs. Altarea SCA | Patrimoine vs. Fonciere Inea | Patrimoine vs. Groupe Partouche SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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