Correlation Between Claranova and Clasquin
Can any of the company-specific risk be diversified away by investing in both Claranova and Clasquin 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 Claranova and Clasquin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Claranova SE and Clasquin, you can compare the effects of market volatilities on Claranova and Clasquin 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 Claranova with a short position of Clasquin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Claranova and Clasquin.
Diversification Opportunities for Claranova and Clasquin
Very good diversification
The 3 months correlation between Claranova and Clasquin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Claranova SE and Clasquin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clasquin and Claranova 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 Claranova SE are associated (or correlated) with Clasquin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clasquin has no effect on the direction of Claranova i.e., Claranova and Clasquin go up and down completely randomly.
Pair Corralation between Claranova and Clasquin
Assuming the 90 days trading horizon Claranova SE is expected to under-perform the Clasquin. In addition to that, Claranova is 19.03 times more volatile than Clasquin. It trades about -0.08 of its total potential returns per unit of risk. Clasquin is currently generating about 0.11 per unit of volatility. If you would invest 14,104 in Clasquin on August 26, 2024 and sell it today you would earn a total of 41.00 from holding Clasquin or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Claranova SE vs. Clasquin
Performance |
| Timeline |
| Claranova SE |
| Clasquin |
Claranova and Clasquin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Claranova and Clasquin
The main advantage of trading using opposite Claranova and Clasquin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Claranova position performs unexpectedly, Clasquin 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 Clasquin will offset losses from the drop in Clasquin's long position.| Claranova vs. Linedata Services SA | Claranova vs. Interparfums SA | Claranova vs. Esker SA | Claranova vs. Neurones |
| Clasquin vs. Prodways Group SA | Clasquin vs. Claranova SE | Clasquin vs. DBV Technologies SA | Clasquin vs. Manitou BF SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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