Correlation Between Caisse Regionale and Kalray SA
Can any of the company-specific risk be diversified away by investing in both Caisse Regionale and Kalray SA 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 Caisse Regionale and Kalray SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caisse Regionale De and Kalray SA, you can compare the effects of market volatilities on Caisse Regionale and Kalray SA 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 Caisse Regionale with a short position of Kalray SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caisse Regionale and Kalray SA.
Diversification Opportunities for Caisse Regionale and Kalray SA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caisse and Kalray is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Caisse Regionale De and Kalray SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalray SA and Caisse Regionale 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 Caisse Regionale De are associated (or correlated) with Kalray SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalray SA has no effect on the direction of Caisse Regionale i.e., Caisse Regionale and Kalray SA go up and down completely randomly.
Pair Corralation between Caisse Regionale and Kalray SA
Assuming the 90 days trading horizon Caisse Regionale De is expected to generate 0.09 times more return on investment than Kalray SA. However, Caisse Regionale De is 10.85 times less risky than Kalray SA. It trades about 0.31 of its potential returns per unit of risk. Kalray SA is currently generating about 0.0 per unit of risk. If you would invest 11,554 in Caisse Regionale De on August 27, 2024 and sell it today you would earn a total of 846.00 from holding Caisse Regionale De or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caisse Regionale De vs. Kalray SA
Performance |
| Timeline |
| Caisse Regionale |
| Kalray SA |
Caisse Regionale and Kalray SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caisse Regionale and Kalray SA
The main advantage of trading using opposite Caisse Regionale and Kalray SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caisse Regionale position performs unexpectedly, Kalray SA 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 Kalray SA will offset losses from the drop in Kalray SA's long position.| Caisse Regionale vs. Caisse Regionale de | Caisse Regionale vs. Caisse rgionale de | Caisse Regionale vs. Caisse Rgionale du |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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