Correlation Between CREDIT IMMOBILIER and TGCC SA
Can any of the company-specific risk be diversified away by investing in both CREDIT IMMOBILIER and TGCC SA 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 TGCC SA 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 TGCC SA, you can compare the effects of market volatilities on CREDIT IMMOBILIER and TGCC SA 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 TGCC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDIT IMMOBILIER and TGCC SA.
Diversification Opportunities for CREDIT IMMOBILIER and TGCC SA
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CREDIT and TGCC is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT IMMOBILIER ET and TGCC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGCC SA 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 TGCC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGCC SA has no effect on the direction of CREDIT IMMOBILIER i.e., CREDIT IMMOBILIER and TGCC SA go up and down completely randomly.
Pair Corralation between CREDIT IMMOBILIER and TGCC SA
Assuming the 90 days trading horizon CREDIT IMMOBILIER ET is expected to under-perform the TGCC SA. But the stock apears to be less risky and, when comparing its historical volatility, CREDIT IMMOBILIER ET is 1.8 times less risky than TGCC SA. The stock trades about -0.16 of its potential returns per unit of risk. The TGCC SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 47,180 in TGCC SA on September 15, 2024 and sell it today you would earn a total of 120.00 from holding TGCC SA or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CREDIT IMMOBILIER ET vs. TGCC SA
Performance |
| Timeline |
| CREDIT IMMOBILIER |
| TGCC SA |
CREDIT IMMOBILIER and TGCC SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDIT IMMOBILIER and TGCC SA
The main advantage of trading using opposite CREDIT IMMOBILIER and TGCC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT IMMOBILIER position performs unexpectedly, TGCC SA 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 TGCC SA will offset losses from the drop in TGCC SA's long position.| CREDIT IMMOBILIER vs. MICRODATA | CREDIT IMMOBILIER vs. TGCC SA | CREDIT IMMOBILIER vs. CFG BANK | CREDIT IMMOBILIER vs. AGMA LAHLOU TAZI |
| TGCC SA vs. MICRODATA | TGCC SA vs. CFG BANK | TGCC SA vs. AGMA LAHLOU TAZI | TGCC SA 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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