Correlation Between Coty and 59156RCC0
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By analyzing existing cross correlation between Coty Inc and MET 5 15 JUL 52, you can compare the effects of market volatilities on Coty and 59156RCC0 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 Coty with a short position of 59156RCC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coty and 59156RCC0.
Diversification Opportunities for Coty and 59156RCC0
Very weak diversification
The 3 months correlation between Coty and 59156RCC0 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Coty Inc and MET 5 15 JUL 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 59156RCC0 and Coty 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 Coty Inc are associated (or correlated) with 59156RCC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 59156RCC0 has no effect on the direction of Coty i.e., Coty and 59156RCC0 go up and down completely randomly.
Pair Corralation between Coty and 59156RCC0
Given the investment horizon of 90 days Coty Inc is expected to under-perform the 59156RCC0. In addition to that, Coty is 1.64 times more volatile than MET 5 15 JUL 52. It trades about -0.09 of its total potential returns per unit of risk. MET 5 15 JUL 52 is currently generating about 0.01 per unit of volatility. If you would invest 9,606 in MET 5 15 JUL 52 on November 3, 2024 and sell it today you would earn a total of 55.00 from holding MET 5 15 JUL 52 or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Coty Inc vs. MET 5 15 JUL 52
Performance |
| Timeline |
| Coty Inc |
| 59156RCC0 |
Coty and 59156RCC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coty and 59156RCC0
The main advantage of trading using opposite Coty and 59156RCC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coty position performs unexpectedly, 59156RCC0 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 59156RCC0 will offset losses from the drop in 59156RCC0's long position.The idea behind Coty Inc and MET 5 15 JUL 52 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 59156RCC0 vs. AEP TEX INC | 59156RCC0 vs. US BANK NATIONAL | 59156RCC0 vs. Reliance Global Group | 59156RCC0 vs. Bayerische Motoren Werke |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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