Correlation Between Eurasia Fonciere and Tikehau Capital
Can any of the company-specific risk be diversified away by investing in both Eurasia Fonciere and Tikehau Capital 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 Eurasia Fonciere and Tikehau Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurasia Fonciere Investissements and Tikehau Capital, you can compare the effects of market volatilities on Eurasia Fonciere and Tikehau Capital 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 Eurasia Fonciere with a short position of Tikehau Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurasia Fonciere and Tikehau Capital.
Diversification Opportunities for Eurasia Fonciere and Tikehau Capital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eurasia and Tikehau is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eurasia Fonciere Investissemen and Tikehau Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikehau Capital and Eurasia Fonciere 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 Eurasia Fonciere Investissements are associated (or correlated) with Tikehau Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikehau Capital has no effect on the direction of Eurasia Fonciere i.e., Eurasia Fonciere and Tikehau Capital go up and down completely randomly.
Pair Corralation between Eurasia Fonciere and Tikehau Capital
Assuming the 90 days trading horizon Eurasia Fonciere Investissements is expected to generate 3.83 times more return on investment than Tikehau Capital. However, Eurasia Fonciere is 3.83 times more volatile than Tikehau Capital. It trades about 0.01 of its potential returns per unit of risk. Tikehau Capital is currently generating about -0.02 per unit of risk. If you would invest 36.00 in Eurasia Fonciere Investissements on August 27, 2024 and sell it today you would lose (7.00) from holding Eurasia Fonciere Investissements or give up 19.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurasia Fonciere Investissemen vs. Tikehau Capital
Performance |
| Timeline |
| Eurasia Fonciere Inv |
| Tikehau Capital |
Eurasia Fonciere and Tikehau Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurasia Fonciere and Tikehau Capital
The main advantage of trading using opposite Eurasia Fonciere and Tikehau Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurasia Fonciere position performs unexpectedly, Tikehau Capital 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 Tikehau Capital will offset losses from the drop in Tikehau Capital's long position.| Eurasia Fonciere vs. Soc Centrale Bois | Eurasia Fonciere vs. Fonciere Inea | Eurasia Fonciere vs. Artea SA |
| Tikehau Capital vs. Eurazeo | Tikehau Capital vs. Wendel | Tikehau Capital vs. SPIE SA | Tikehau Capital vs. Amundi SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |