Correlation Between CNVISION MEDIA and ENGIE Eps
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and ENGIE Eps 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 CNVISION MEDIA and ENGIE Eps into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and ENGIE Eps SA, you can compare the effects of market volatilities on CNVISION MEDIA and ENGIE Eps 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 CNVISION MEDIA with a short position of ENGIE Eps. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and ENGIE Eps.
Diversification Opportunities for CNVISION MEDIA and ENGIE Eps
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNVISION and ENGIE is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and ENGIE Eps SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGIE Eps SA and CNVISION 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 CNVISION MEDIA are associated (or correlated) with ENGIE Eps. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGIE Eps SA has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and ENGIE Eps go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and ENGIE Eps
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 1.58 times more return on investment than ENGIE Eps. However, CNVISION MEDIA is 1.58 times more volatile than ENGIE Eps SA. It trades about 0.1 of its potential returns per unit of risk. ENGIE Eps SA is currently generating about 0.12 per unit of risk. If you would invest 4.00 in CNVISION MEDIA on September 2, 2024 and sell it today you would earn a total of 0.85 from holding CNVISION MEDIA or generate 21.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
CNVISION MEDIA vs. ENGIE Eps SA
Performance |
| Timeline |
| CNVISION MEDIA |
| ENGIE Eps SA |
CNVISION MEDIA and ENGIE Eps Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and ENGIE Eps
The main advantage of trading using opposite CNVISION MEDIA and ENGIE Eps positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, ENGIE Eps 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 ENGIE Eps will offset losses from the drop in ENGIE Eps' long position.| CNVISION MEDIA vs. SIVERS SEMICONDUCTORS AB | CNVISION MEDIA vs. Darden Restaurants | CNVISION MEDIA vs. Reliance Steel Aluminum | CNVISION MEDIA vs. Q2M Managementberatung AG |
| ENGIE Eps vs. Hollywood Bowl Group | ENGIE Eps vs. TSOGO SUN GAMING | ENGIE Eps vs. Media and Games | ENGIE Eps vs. CNVISION MEDIA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| 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. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |