Correlation Between Carmat SA and MINING PROJECTS
Can any of the company-specific risk be diversified away by investing in both Carmat SA and MINING PROJECTS 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 MINING PROJECTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and MINING PROJECTS GRP, you can compare the effects of market volatilities on Carmat SA and MINING PROJECTS 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 MINING PROJECTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and MINING PROJECTS.
Diversification Opportunities for Carmat SA and MINING PROJECTS
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carmat and MINING is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and MINING PROJECTS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINING PROJECTS GRP 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 MINING PROJECTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINING PROJECTS GRP has no effect on the direction of Carmat SA i.e., Carmat SA and MINING PROJECTS go up and down completely randomly.
Pair Corralation between Carmat SA and MINING PROJECTS
Assuming the 90 days horizon Carmat SA is expected to under-perform the MINING PROJECTS. But the stock apears to be less risky and, when comparing its historical volatility, Carmat SA is 1.13 times less risky than MINING PROJECTS. The stock trades about -0.04 of its potential returns per unit of risk. The MINING PROJECTS GRP is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1.00 in MINING PROJECTS GRP on August 24, 2024 and sell it today you would lose (0.15) from holding MINING PROJECTS GRP or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. MINING PROJECTS GRP
Performance |
| Timeline |
| Carmat SA |
| MINING PROJECTS GRP |
Carmat SA and MINING PROJECTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and MINING PROJECTS
The main advantage of trading using opposite Carmat SA and MINING PROJECTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA position performs unexpectedly, MINING PROJECTS 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 MINING PROJECTS will offset losses from the drop in MINING PROJECTS's long position.| Carmat SA vs. Intuitive Surgical | Carmat SA vs. HOYA Corporation | Carmat SA vs. Superior Plus Corp | Carmat SA vs. NMI Holdings |
| MINING PROJECTS vs. BURLINGTON STORES | MINING PROJECTS vs. GameStop Corp | MINING PROJECTS vs. Retail Estates NV | MINING PROJECTS vs. GigaMedia |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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