Correlation Between Dassault Systmes and Currys PLC
Can any of the company-specific risk be diversified away by investing in both Dassault Systmes and Currys PLC 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 Dassault Systmes and Currys PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dassault Systmes SE and Currys PLC, you can compare the effects of market volatilities on Dassault Systmes and Currys PLC 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 Dassault Systmes with a short position of Currys PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dassault Systmes and Currys PLC.
Diversification Opportunities for Dassault Systmes and Currys PLC
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dassault and Currys is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dassault Systmes SE and Currys PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Currys PLC and Dassault Systmes 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 Dassault Systmes SE are associated (or correlated) with Currys PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Currys PLC has no effect on the direction of Dassault Systmes i.e., Dassault Systmes and Currys PLC go up and down completely randomly.
Pair Corralation between Dassault Systmes and Currys PLC
Assuming the 90 days horizon Dassault Systmes SE is expected to generate 0.77 times more return on investment than Currys PLC. However, Dassault Systmes SE is 1.29 times less risky than Currys PLC. It trades about 0.38 of its potential returns per unit of risk. Currys PLC is currently generating about 0.29 per unit of risk. If you would invest 3,260 in Dassault Systmes SE on November 4, 2024 and sell it today you would earn a total of 480.00 from holding Dassault Systmes SE or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dassault Systmes SE vs. Currys PLC
Performance |
| Timeline |
| Dassault Systmes |
| Currys PLC |
Dassault Systmes and Currys PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dassault Systmes and Currys PLC
The main advantage of trading using opposite Dassault Systmes and Currys PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dassault Systmes position performs unexpectedly, Currys PLC 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 Currys PLC will offset losses from the drop in Currys PLC's long position.| Dassault Systmes vs. Suntory Beverage Food | Dassault Systmes vs. Austevoll Seafood ASA | Dassault Systmes vs. ZhongAn Online P | Dassault Systmes vs. GWILLI FOOD |
| Currys PLC vs. Tianjin Capital Environmental | Currys PLC vs. PT Steel Pipe | Currys PLC vs. COSMOSTEEL HLDGS | Currys PLC vs. OPKO HEALTH |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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