Correlation Between Celyad SA and Montea CVA
Can any of the company-specific risk be diversified away by investing in both Celyad SA and Montea CVA 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 Montea CVA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and Montea CVA, you can compare the effects of market volatilities on Celyad SA and Montea CVA 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 Montea CVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and Montea CVA.
Diversification Opportunities for Celyad SA and Montea CVA
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celyad and Montea is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Montea CVA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montea CVA 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 Montea CVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montea CVA has no effect on the direction of Celyad SA i.e., Celyad SA and Montea CVA go up and down completely randomly.
Pair Corralation between Celyad SA and Montea CVA
Assuming the 90 days trading horizon Celyad SA is expected to generate 7.27 times more return on investment than Montea CVA. However, Celyad SA is 7.27 times more volatile than Montea CVA. It trades about 0.08 of its potential returns per unit of risk. Montea CVA is currently generating about -0.02 per unit of risk. If you would invest 36.00 in Celyad SA on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Celyad SA or generate 102.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Celyad SA vs. Montea CVA
Performance |
| Timeline |
| Celyad SA |
| Montea CVA |
Celyad SA and Montea CVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and Montea CVA
The main advantage of trading using opposite Celyad SA and Montea CVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA position performs unexpectedly, Montea CVA 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 Montea CVA will offset losses from the drop in Montea CVA's long position.| Celyad SA vs. Retail Estates | Celyad SA vs. Shurgard Self Storage | Celyad SA vs. Onward Medical NV | Celyad SA vs. Vastned Retail Belgium |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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