Correlation Between Coface SA and Klepierre
Can any of the company-specific risk be diversified away by investing in both Coface SA and Klepierre 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 Coface SA and Klepierre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coface SA and Klepierre SA, you can compare the effects of market volatilities on Coface SA and Klepierre 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 Coface SA with a short position of Klepierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coface SA and Klepierre.
Diversification Opportunities for Coface SA and Klepierre
Modest diversification
The 3 months correlation between Coface and Klepierre is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Coface SA and Klepierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klepierre SA and Coface SA 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 Coface SA are associated (or correlated) with Klepierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klepierre SA has no effect on the direction of Coface SA i.e., Coface SA and Klepierre go up and down completely randomly.
Pair Corralation between Coface SA and Klepierre
Assuming the 90 days trading horizon Coface SA is expected to generate 1.0 times more return on investment than Klepierre. However, Coface SA is 1.0 times less risky than Klepierre. It trades about 0.26 of its potential returns per unit of risk. Klepierre SA is currently generating about 0.1 per unit of risk. If you would invest 1,476 in Coface SA on November 5, 2024 and sell it today you would earn a total of 83.00 from holding Coface SA or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coface SA vs. Klepierre SA
Performance |
| Timeline |
| Coface SA |
| Klepierre SA |
Coface SA and Klepierre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coface SA and Klepierre
The main advantage of trading using opposite Coface SA and Klepierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coface SA position performs unexpectedly, Klepierre 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 Klepierre will offset losses from the drop in Klepierre's long position.| Coface SA vs. Nexity | Coface SA vs. SCOR SE | Coface SA vs. Eutelsat Communications SA | Coface SA vs. Rubis SCA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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