Correlation Between Carmat SA and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both Carmat SA and GOLD ROAD 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 Carmat SA and GOLD ROAD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and GOLD ROAD RES, you can compare the effects of market volatilities on Carmat SA and GOLD ROAD 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 Carmat SA with a short position of GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and GOLD ROAD.
Diversification Opportunities for Carmat SA and GOLD ROAD
Excellent diversification
The 3 months correlation between Carmat and GOLD is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES and Carmat SA 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 Carmat SA are associated (or correlated) with GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of Carmat SA i.e., Carmat SA and GOLD ROAD go up and down completely randomly.
Pair Corralation between Carmat SA and GOLD ROAD
Assuming the 90 days horizon Carmat SA is expected to under-perform the GOLD ROAD. In addition to that, Carmat SA is 2.19 times more volatile than GOLD ROAD RES. It trades about -0.05 of its total potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.02 per unit of volatility. If you would invest 112.00 in GOLD ROAD RES on August 28, 2024 and sell it today you would earn a total of 1.00 from holding GOLD ROAD RES or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Carmat SA vs. GOLD ROAD RES
Performance |
| Timeline |
| Carmat SA |
| GOLD ROAD RES |
Carmat SA and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and GOLD ROAD
The main advantage of trading using opposite Carmat SA and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| Carmat SA vs. Intuitive Surgical | Carmat SA vs. Superior Plus Corp | Carmat SA vs. NMI Holdings | Carmat SA vs. Origin Agritech |
| GOLD ROAD vs. FARO Technologies | GOLD ROAD vs. REGAL ASIAN INVESTMENTS | GOLD ROAD vs. MGIC INVESTMENT | GOLD ROAD vs. THORNEY TECHS LTD |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |