Correlation Between CEOTRONICS (CEKSG) and MR BRICOLAGE
Can any of the company-specific risk be diversified away by investing in both CEOTRONICS (CEKSG) and MR BRICOLAGE 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 CEOTRONICS (CEKSG) and MR BRICOLAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEOTRONICS and MR BRICOLAGE INH, you can compare the effects of market volatilities on CEOTRONICS (CEKSG) and MR BRICOLAGE 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 CEOTRONICS (CEKSG) with a short position of MR BRICOLAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEOTRONICS (CEKSG) and MR BRICOLAGE.
Diversification Opportunities for CEOTRONICS (CEKSG) and MR BRICOLAGE
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between CEOTRONICS and 4OL is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CEOTRONICS and MR BRICOLAGE INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MR BRICOLAGE INH and CEOTRONICS (CEKSG) 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 CEOTRONICS are associated (or correlated) with MR BRICOLAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MR BRICOLAGE INH has no effect on the direction of CEOTRONICS (CEKSG) i.e., CEOTRONICS (CEKSG) and MR BRICOLAGE go up and down completely randomly.
Pair Corralation between CEOTRONICS (CEKSG) and MR BRICOLAGE
Assuming the 90 days trading horizon CEOTRONICS is expected to generate 1.39 times more return on investment than MR BRICOLAGE. However, CEOTRONICS (CEKSG) is 1.39 times more volatile than MR BRICOLAGE INH. It trades about 0.28 of its potential returns per unit of risk. MR BRICOLAGE INH is currently generating about 0.08 per unit of risk. If you would invest 520.00 in CEOTRONICS on September 1, 2024 and sell it today you would earn a total of 100.00 from holding CEOTRONICS or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CEOTRONICS vs. MR BRICOLAGE INH
Performance |
| Timeline |
| CEOTRONICS (CEKSG) |
| MR BRICOLAGE INH |
CEOTRONICS (CEKSG) and MR BRICOLAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEOTRONICS (CEKSG) and MR BRICOLAGE
The main advantage of trading using opposite CEOTRONICS (CEKSG) and MR BRICOLAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEOTRONICS (CEKSG) position performs unexpectedly, MR BRICOLAGE 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 MR BRICOLAGE will offset losses from the drop in MR BRICOLAGE's long position.| CEOTRONICS (CEKSG) vs. SIVERS SEMICONDUCTORS AB | CEOTRONICS (CEKSG) vs. Darden Restaurants | CEOTRONICS (CEKSG) vs. Reliance Steel Aluminum | CEOTRONICS (CEKSG) vs. Q2M Managementberatung AG |
| MR BRICOLAGE vs. The Home Depot | MR BRICOLAGE vs. The Home Depot | MR BRICOLAGE vs. HORNBACH Baumarkt AG | MR BRICOLAGE vs. WICKES GROUP PLC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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