Correlation Between Eiffage SA and Aecon
Can any of the company-specific risk be diversified away by investing in both Eiffage SA and Aecon 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 Eiffage SA and Aecon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eiffage SA ADR and Aecon Group, you can compare the effects of market volatilities on Eiffage SA and Aecon 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 Eiffage SA with a short position of Aecon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eiffage SA and Aecon.
Diversification Opportunities for Eiffage SA and Aecon
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eiffage and Aecon is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eiffage SA ADR and Aecon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecon Group and Eiffage 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 Eiffage SA ADR are associated (or correlated) with Aecon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecon Group has no effect on the direction of Eiffage SA i.e., Eiffage SA and Aecon go up and down completely randomly.
Pair Corralation between Eiffage SA and Aecon
Assuming the 90 days horizon Eiffage SA is expected to generate 77.39 times less return on investment than Aecon. But when comparing it to its historical volatility, Eiffage SA ADR is 2.27 times less risky than Aecon. It trades about 0.0 of its potential returns per unit of risk. Aecon Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 623.00 in Aecon Group on September 3, 2024 and sell it today you would earn a total of 1,433 from holding Aecon Group or generate 230.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 88.37% |
| Values | Daily Returns |
Eiffage SA ADR vs. Aecon Group
Performance |
| Timeline |
| Eiffage SA ADR |
| Aecon Group |
Eiffage SA and Aecon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eiffage SA and Aecon
The main advantage of trading using opposite Eiffage SA and Aecon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eiffage SA position performs unexpectedly, Aecon 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 Aecon will offset losses from the drop in Aecon's long position.| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. ACS Actividades de | Eiffage SA vs. ACS Actividades De | Eiffage SA vs. Badger Infrastructure Solutions |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Correlations Find global opportunities by holding instruments from different markets |