Correlation Between Crosswood and Stradim Espace
Can any of the company-specific risk be diversified away by investing in both Crosswood and Stradim Espace 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 Crosswood and Stradim Espace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crosswood and Stradim Espace Finances, you can compare the effects of market volatilities on Crosswood and Stradim Espace 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 Crosswood with a short position of Stradim Espace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crosswood and Stradim Espace.
Diversification Opportunities for Crosswood and Stradim Espace
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crosswood and Stradim is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Crosswood and Stradim Espace Finances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stradim Espace Finances and Crosswood 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 Crosswood are associated (or correlated) with Stradim Espace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stradim Espace Finances has no effect on the direction of Crosswood i.e., Crosswood and Stradim Espace go up and down completely randomly.
Pair Corralation between Crosswood and Stradim Espace
Assuming the 90 days trading horizon Crosswood is expected to generate 0.94 times more return on investment than Stradim Espace. However, Crosswood is 1.06 times less risky than Stradim Espace. It trades about 0.01 of its potential returns per unit of risk. Stradim Espace Finances is currently generating about -0.07 per unit of risk. If you would invest 885.00 in Crosswood on September 1, 2024 and sell it today you would lose (5.00) from holding Crosswood or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crosswood vs. Stradim Espace Finances
Performance |
| Timeline |
| Crosswood |
| Stradim Espace Finances |
Crosswood and Stradim Espace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crosswood and Stradim Espace
The main advantage of trading using opposite Crosswood and Stradim Espace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crosswood position performs unexpectedly, Stradim Espace 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 Stradim Espace will offset losses from the drop in Stradim Espace's long position.| Crosswood vs. Marie Brizard Wine | Crosswood vs. Pullup Entertainment Socit | Crosswood vs. Hotel Majestic Cannes | Crosswood vs. Jacquet Metal Service |
| Stradim Espace vs. Oeneo SA | Stradim Espace vs. Entreparticuli | Stradim Espace vs. Enertime SAS | Stradim Espace vs. Esso SAF |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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