Correlation Between Conrad Industries and Thales SA
Can any of the company-specific risk be diversified away by investing in both Conrad Industries and Thales 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 Conrad Industries and Thales SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conrad Industries and Thales SA ADR, you can compare the effects of market volatilities on Conrad Industries and Thales 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 Conrad Industries with a short position of Thales SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conrad Industries and Thales SA.
Diversification Opportunities for Conrad Industries and Thales SA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Conrad and Thales is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Conrad Industries and Thales SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thales SA ADR and Conrad Industries 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 Conrad Industries are associated (or correlated) with Thales SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thales SA ADR has no effect on the direction of Conrad Industries i.e., Conrad Industries and Thales SA go up and down completely randomly.
Pair Corralation between Conrad Industries and Thales SA
If you would invest 1,030 in Conrad Industries on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Conrad Industries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Conrad Industries vs. Thales SA ADR
Performance |
| Timeline |
| Conrad Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Thales SA ADR |
Conrad Industries and Thales SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conrad Industries and Thales SA
The main advantage of trading using opposite Conrad Industries and Thales SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conrad Industries position performs unexpectedly, Thales 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 Thales SA will offset losses from the drop in Thales SA's long position.| Conrad Industries vs. Thales SA ADR | Conrad Industries vs. MTU Aero Engines | Conrad Industries vs. Safran SA | Conrad Industries vs. Leonardo SpA ADR |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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