Correlation Between Caisse Regionale and CFM Indosuez
Can any of the company-specific risk be diversified away by investing in both Caisse Regionale and CFM Indosuez 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 Caisse Regionale and CFM Indosuez into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caisse Regionale de and CFM Indosuez Wealth, you can compare the effects of market volatilities on Caisse Regionale and CFM Indosuez 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 Caisse Regionale with a short position of CFM Indosuez. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caisse Regionale and CFM Indosuez.
Diversification Opportunities for Caisse Regionale and CFM Indosuez
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Caisse and CFM is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Caisse Regionale de and CFM Indosuez Wealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFM Indosuez Wealth and Caisse Regionale 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 Caisse Regionale de are associated (or correlated) with CFM Indosuez. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFM Indosuez Wealth has no effect on the direction of Caisse Regionale i.e., Caisse Regionale and CFM Indosuez go up and down completely randomly.
Pair Corralation between Caisse Regionale and CFM Indosuez
Assuming the 90 days trading horizon Caisse Regionale de is expected to generate 0.85 times more return on investment than CFM Indosuez. However, Caisse Regionale de is 1.17 times less risky than CFM Indosuez. It trades about 0.15 of its potential returns per unit of risk. CFM Indosuez Wealth is currently generating about -0.21 per unit of risk. If you would invest 5,980 in Caisse Regionale de on August 25, 2024 and sell it today you would earn a total of 289.00 from holding Caisse Regionale de or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caisse Regionale de vs. CFM Indosuez Wealth
Performance |
| Timeline |
| Caisse Regionale |
| CFM Indosuez Wealth |
Caisse Regionale and CFM Indosuez Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caisse Regionale and CFM Indosuez
The main advantage of trading using opposite Caisse Regionale and CFM Indosuez positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caisse Regionale position performs unexpectedly, CFM Indosuez 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 CFM Indosuez will offset losses from the drop in CFM Indosuez's long position.| Caisse Regionale vs. Caisse rgionale de | Caisse Regionale vs. Caisse Regionale de | Caisse Regionale vs. Manitou BF SA | Caisse Regionale vs. Ossiam Minimum Variance |
| CFM Indosuez vs. Caisse rgionale de | CFM Indosuez vs. Caisse Regionale de | CFM Indosuez vs. Caisse Rgionale du | CFM Indosuez vs. Caisse Regionale de |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |