Correlation Between Compagnie and Antelope Enterprise
Can any of the company-specific risk be diversified away by investing in both Compagnie and Antelope Enterprise 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 Compagnie and Antelope Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie de Saint Gobain and Antelope Enterprise Holdings, you can compare the effects of market volatilities on Compagnie and Antelope Enterprise 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 Compagnie with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie and Antelope Enterprise.
Diversification Opportunities for Compagnie and Antelope Enterprise
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compagnie and Antelope is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie de Saint Gobain and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Compagnie 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 Compagnie de Saint Gobain are associated (or correlated) with Antelope Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antelope Enterprise has no effect on the direction of Compagnie i.e., Compagnie and Antelope Enterprise go up and down completely randomly.
Pair Corralation between Compagnie and Antelope Enterprise
Assuming the 90 days horizon Compagnie de Saint Gobain is expected to generate 0.14 times more return on investment than Antelope Enterprise. However, Compagnie de Saint Gobain is 7.09 times less risky than Antelope Enterprise. It trades about 0.23 of its potential returns per unit of risk. Antelope Enterprise Holdings is currently generating about -0.24 per unit of risk. If you would invest 9,019 in Compagnie de Saint Gobain on August 28, 2024 and sell it today you would earn a total of 441.00 from holding Compagnie de Saint Gobain or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie de Saint Gobain vs. Antelope Enterprise Holdings
Performance |
| Timeline |
| Compagnie de Saint |
| Antelope Enterprise |
Compagnie and Antelope Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie and Antelope Enterprise
The main advantage of trading using opposite Compagnie and Antelope Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie position performs unexpectedly, Antelope Enterprise 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 Antelope Enterprise will offset losses from the drop in Antelope Enterprise's long position.| Compagnie vs. Antelope Enterprise Holdings | Compagnie vs. Azek Company | Compagnie vs. AAON Inc | Compagnie vs. GMS Inc |
| Antelope Enterprise vs. Azek Company | Antelope Enterprise vs. AAON Inc | Antelope Enterprise vs. GMS Inc | Antelope Enterprise vs. Intelligent Living Application |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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