Correlation Between Chudenko and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both Chudenko and Eiffage 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 Chudenko and Eiffage SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chudenko and Eiffage SA ADR, you can compare the effects of market volatilities on Chudenko and Eiffage 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 Chudenko with a short position of Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chudenko and Eiffage SA.
Diversification Opportunities for Chudenko and Eiffage SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chudenko and Eiffage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chudenko and Eiffage SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA ADR and Chudenko 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 Chudenko are associated (or correlated) with Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA ADR has no effect on the direction of Chudenko i.e., Chudenko and Eiffage SA go up and down completely randomly.
Pair Corralation between Chudenko and Eiffage SA
Assuming the 90 days horizon Chudenko is expected to generate 0.62 times more return on investment than Eiffage SA. However, Chudenko is 1.62 times less risky than Eiffage SA. It trades about 0.06 of its potential returns per unit of risk. Eiffage SA ADR is currently generating about 0.0 per unit of risk. If you would invest 1,393 in Chudenko on September 4, 2024 and sell it today you would earn a total of 355.00 from holding Chudenko or generate 25.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.24% |
| Values | Daily Returns |
Chudenko vs. Eiffage SA ADR
Performance |
| Timeline |
| Chudenko |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eiffage SA ADR |
Chudenko and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chudenko and Eiffage SA
The main advantage of trading using opposite Chudenko and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chudenko position performs unexpectedly, Eiffage 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 Eiffage SA will offset losses from the drop in Eiffage SA's long position.| Chudenko vs. Eiffage SA ADR | Chudenko vs. Reliant Holdings | Chudenko vs. Aecon Group | Chudenko vs. Argan Inc |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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