Correlation Between Caisse Regionale and Predilife
Can any of the company-specific risk be diversified away by investing in both Caisse Regionale and Predilife 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 Predilife 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 Predilife, you can compare the effects of market volatilities on Caisse Regionale and Predilife 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 Predilife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caisse Regionale and Predilife.
Diversification Opportunities for Caisse Regionale and Predilife
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caisse and Predilife is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Caisse Regionale De and Predilife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predilife 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 Predilife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predilife has no effect on the direction of Caisse Regionale i.e., Caisse Regionale and Predilife go up and down completely randomly.
Pair Corralation between Caisse Regionale and Predilife
Assuming the 90 days trading horizon Caisse Regionale De is expected to under-perform the Predilife. But the stock apears to be less risky and, when comparing its historical volatility, Caisse Regionale De is 11.61 times less risky than Predilife. The stock trades about -0.01 of its potential returns per unit of risk. The Predilife is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 580.00 in Predilife on August 26, 2024 and sell it today you would lose (150.00) from holding Predilife or give up 25.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caisse Regionale De vs. Predilife
Performance |
| Timeline |
| Caisse Regionale |
| Predilife |
Caisse Regionale and Predilife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caisse Regionale and Predilife
The main advantage of trading using opposite Caisse Regionale and Predilife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caisse Regionale position performs unexpectedly, Predilife 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 Predilife will offset losses from the drop in Predilife's long position.| Caisse Regionale vs. Caisse rgionale de | Caisse Regionale vs. Caisse Regionale de | Caisse Regionale vs. Manitou BF SA | Caisse Regionale vs. Ossiam Minimum Variance |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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