Correlation Between Credit Agricole and Farmers
Can any of the company-specific risk be diversified away by investing in both Credit Agricole and Farmers 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 Credit Agricole and Farmers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Agricole SA and Farmers And Merchants, you can compare the effects of market volatilities on Credit Agricole and Farmers 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 Credit Agricole with a short position of Farmers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and Farmers.
Diversification Opportunities for Credit Agricole and Farmers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Farmers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole SA and Farmers And Merchants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers And Merchants and Credit 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 Credit Agricole SA are associated (or correlated) with Farmers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers And Merchants has no effect on the direction of Credit Agricole i.e., Credit Agricole and Farmers go up and down completely randomly.
Pair Corralation between Credit Agricole and Farmers
If you would invest 0.00 in Farmers And Merchants on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Farmers And Merchants or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Credit Agricole SA vs. Farmers And Merchants
Performance |
| Timeline |
| Credit Agricole SA |
| Farmers And Merchants |
Credit Agricole and Farmers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Agricole and Farmers
The main advantage of trading using opposite Credit Agricole and Farmers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole position performs unexpectedly, Farmers 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 Farmers will offset losses from the drop in Farmers' long position.| Credit Agricole vs. Societe Generale ADR | Credit Agricole vs. UniCredit SpA ADR | Credit Agricole vs. Banco Do Brasil | Credit Agricole vs. BNP Paribas SA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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