Correlation Between Celyad SA and Deceuninck
Can any of the company-specific risk be diversified away by investing in both Celyad SA and Deceuninck 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 Celyad SA and Deceuninck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and Deceuninck, you can compare the effects of market volatilities on Celyad SA and Deceuninck 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 Celyad SA with a short position of Deceuninck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and Deceuninck.
Diversification Opportunities for Celyad SA and Deceuninck
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celyad and Deceuninck is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Deceuninck in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deceuninck and Celyad 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 Celyad SA are associated (or correlated) with Deceuninck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deceuninck has no effect on the direction of Celyad SA i.e., Celyad SA and Deceuninck go up and down completely randomly.
Pair Corralation between Celyad SA and Deceuninck
Assuming the 90 days trading horizon Celyad SA is expected to generate 10.22 times more return on investment than Deceuninck. However, Celyad SA is 10.22 times more volatile than Deceuninck. It trades about 0.1 of its potential returns per unit of risk. Deceuninck is currently generating about 0.01 per unit of risk. If you would invest 47.00 in Celyad SA on November 29, 2024 and sell it today you would earn a total of 6.00 from holding Celyad SA or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celyad SA vs. Deceuninck
Performance |
| Timeline |
| Celyad SA |
| Deceuninck |
Celyad SA and Deceuninck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and Deceuninck
The main advantage of trading using opposite Celyad SA and Deceuninck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA position performs unexpectedly, Deceuninck 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 Deceuninck will offset losses from the drop in Deceuninck's long position.| Celyad SA vs. Vastned Retail Belgium | Celyad SA vs. Shurgard Self Storage | Celyad SA vs. Home Invest Belgium | Celyad SA vs. Onward Medical NV |
| Deceuninck vs. NV Bekaert SA | Deceuninck vs. Tessenderlo | Deceuninck vs. Barco NV | Deceuninck vs. EVS Broadcast Equipment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |