Correlation Between Claranova and Streamwide
Can any of the company-specific risk be diversified away by investing in both Claranova and Streamwide 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 Streamwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Claranova SE and Streamwide, you can compare the effects of market volatilities on Claranova and Streamwide 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 Streamwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Claranova and Streamwide.
Diversification Opportunities for Claranova and Streamwide
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Claranova and Streamwide is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Claranova SE and Streamwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamwide 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 Streamwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamwide has no effect on the direction of Claranova i.e., Claranova and Streamwide go up and down completely randomly.
Pair Corralation between Claranova and Streamwide
Assuming the 90 days trading horizon Claranova SE is expected to under-perform the Streamwide. In addition to that, Claranova is 1.53 times more volatile than Streamwide. It trades about -0.02 of its total potential returns per unit of risk. Streamwide is currently generating about 0.06 per unit of volatility. If you would invest 1,800 in Streamwide on August 30, 2024 and sell it today you would earn a total of 1,310 from holding Streamwide or generate 72.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Claranova SE vs. Streamwide
Performance |
| Timeline |
| Claranova SE |
| Streamwide |
Claranova and Streamwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Claranova and Streamwide
The main advantage of trading using opposite Claranova and Streamwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Claranova position performs unexpectedly, Streamwide 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 Streamwide will offset losses from the drop in Streamwide's long position.| Claranova vs. Sword Group SE | Claranova vs. Neurones | Claranova vs. Aubay Socit Anonyme | Claranova vs. Groupe CRIT SA |
| Streamwide vs. Aubay Socit Anonyme | Streamwide vs. Infotel SA | Streamwide vs. IT Link | Streamwide 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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