Correlation Between Celyad SA and Roularta
Can any of the company-specific risk be diversified away by investing in both Celyad SA and Roularta 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 Roularta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and Roularta, you can compare the effects of market volatilities on Celyad SA and Roularta 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 Roularta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and Roularta.
Diversification Opportunities for Celyad SA and Roularta
Very good diversification
The 3 months correlation between Celyad and Roularta is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Roularta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roularta 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 Roularta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roularta has no effect on the direction of Celyad SA i.e., Celyad SA and Roularta go up and down completely randomly.
Pair Corralation between Celyad SA and Roularta
Assuming the 90 days trading horizon Celyad SA is expected to generate 23.87 times more return on investment than Roularta. However, Celyad SA is 23.87 times more volatile than Roularta. It trades about 0.25 of its potential returns per unit of risk. Roularta is currently generating about -0.22 per unit of risk. If you would invest 35.00 in Celyad SA on September 4, 2024 and sell it today you would earn a total of 47.00 from holding Celyad SA or generate 134.29% 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. Roularta
Performance |
| Timeline |
| Celyad SA |
| Roularta |
Celyad SA and Roularta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and Roularta
The main advantage of trading using opposite Celyad SA and Roularta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA position performs unexpectedly, Roularta 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 Roularta will offset losses from the drop in Roularta's long position.| Celyad SA vs. Groep Brussel Lambert | Celyad SA vs. Ackermans Van Haaren | Celyad SA vs. Tessenderlo | Celyad SA vs. Sofina Socit Anonyme |
| Roularta vs. Tessenderlo | Roularta vs. EVS Broadcast Equipment | Roularta vs. Sipef NV | Roularta vs. Exmar NV |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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