Correlation Between Crédit Agricole and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both Crédit Agricole and Credit Agricole 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 Crédit Agricole and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crdit Agricole SA and Credit Agricole SA, you can compare the effects of market volatilities on Crédit Agricole and Credit Agricole 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 Crédit Agricole with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crédit Agricole and Credit Agricole.
Diversification Opportunities for Crédit Agricole and Credit Agricole
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crédit and Credit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and Crédit Agricole 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 Crdit Agricole SA are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of Crédit Agricole i.e., Crédit Agricole and Credit Agricole go up and down completely randomly.
Pair Corralation between Crédit Agricole and Credit Agricole
Assuming the 90 days horizon Crdit Agricole SA is expected to generate 1.58 times more return on investment than Credit Agricole. However, Crédit Agricole is 1.58 times more volatile than Credit Agricole SA. It trades about 0.04 of its potential returns per unit of risk. Credit Agricole SA is currently generating about 0.04 per unit of risk. If you would invest 1,086 in Crdit Agricole SA on August 31, 2024 and sell it today you would earn a total of 210.00 from holding Crdit Agricole SA or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 91.42% |
| Values | Daily Returns |
Crdit Agricole SA vs. Credit Agricole SA
Performance |
| Timeline |
| Crdit Agricole SA |
| Credit Agricole SA |
Crédit Agricole and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crédit Agricole and Credit Agricole
The main advantage of trading using opposite Crédit Agricole and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crédit Agricole position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.| Crédit Agricole vs. BNP Paribas SA | Crédit Agricole vs. Farmers And Merchants | Crédit Agricole vs. The Bancorp | Crédit Agricole vs. Banco Bradesco SA |
| Credit Agricole vs. Intesa Sanpaolo SpA | Credit Agricole vs. BNP Paribas SA | Credit Agricole vs. Societe Generale ADR | Credit Agricole vs. Hang Seng Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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