Correlation Between CREDIT IMMOBILIER and HIGHTECH PAYMENT
Can any of the company-specific risk be diversified away by investing in both CREDIT IMMOBILIER and HIGHTECH PAYMENT 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 CREDIT IMMOBILIER and HIGHTECH PAYMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREDIT IMMOBILIER ET and HIGHTECH PAYMENT SYSTEMS, you can compare the effects of market volatilities on CREDIT IMMOBILIER and HIGHTECH PAYMENT 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 CREDIT IMMOBILIER with a short position of HIGHTECH PAYMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDIT IMMOBILIER and HIGHTECH PAYMENT.
Diversification Opportunities for CREDIT IMMOBILIER and HIGHTECH PAYMENT
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CREDIT and HIGHTECH is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT IMMOBILIER ET and HIGHTECH PAYMENT SYSTEMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIGHTECH PAYMENT SYSTEMS and CREDIT IMMOBILIER 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 CREDIT IMMOBILIER ET are associated (or correlated) with HIGHTECH PAYMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIGHTECH PAYMENT SYSTEMS has no effect on the direction of CREDIT IMMOBILIER i.e., CREDIT IMMOBILIER and HIGHTECH PAYMENT go up and down completely randomly.
Pair Corralation between CREDIT IMMOBILIER and HIGHTECH PAYMENT
Assuming the 90 days trading horizon CREDIT IMMOBILIER ET is expected to generate 1.07 times more return on investment than HIGHTECH PAYMENT. However, CREDIT IMMOBILIER is 1.07 times more volatile than HIGHTECH PAYMENT SYSTEMS. It trades about 0.06 of its potential returns per unit of risk. HIGHTECH PAYMENT SYSTEMS is currently generating about -0.02 per unit of risk. If you would invest 35,100 in CREDIT IMMOBILIER ET on August 26, 2024 and sell it today you would earn a total of 6,900 from holding CREDIT IMMOBILIER ET or generate 19.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
CREDIT IMMOBILIER ET vs. HIGHTECH PAYMENT SYSTEMS
Performance |
| Timeline |
| CREDIT IMMOBILIER |
| HIGHTECH PAYMENT SYSTEMS |
CREDIT IMMOBILIER and HIGHTECH PAYMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDIT IMMOBILIER and HIGHTECH PAYMENT
The main advantage of trading using opposite CREDIT IMMOBILIER and HIGHTECH PAYMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT IMMOBILIER position performs unexpectedly, HIGHTECH PAYMENT 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 HIGHTECH PAYMENT will offset losses from the drop in HIGHTECH PAYMENT's long position.| CREDIT IMMOBILIER vs. BMCI | CREDIT IMMOBILIER vs. CFG BANK | CREDIT IMMOBILIER vs. AGMA LAHLOU TAZI | CREDIT IMMOBILIER vs. MAROC LEASING |
| HIGHTECH PAYMENT vs. BMCI | HIGHTECH PAYMENT vs. CFG BANK | HIGHTECH PAYMENT vs. AGMA LAHLOU TAZI | HIGHTECH PAYMENT vs. CREDIT IMMOBILIER ET |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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