Correlation Between Ekinops SA and Caisse Regionale
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Caisse Regionale 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 Ekinops SA and Caisse Regionale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Caisse Regionale de, you can compare the effects of market volatilities on Ekinops SA and Caisse Regionale 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 Ekinops SA with a short position of Caisse Regionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Caisse Regionale.
Diversification Opportunities for Ekinops SA and Caisse Regionale
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ekinops and Caisse is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale and Ekinops 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 Ekinops SA are associated (or correlated) with Caisse Regionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Regionale has no effect on the direction of Ekinops SA i.e., Ekinops SA and Caisse Regionale go up and down completely randomly.
Pair Corralation between Ekinops SA and Caisse Regionale
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Caisse Regionale. In addition to that, Ekinops SA is 1.33 times more volatile than Caisse Regionale de. It trades about -0.06 of its total potential returns per unit of risk. Caisse Regionale de is currently generating about 0.15 per unit of volatility. If you would invest 5,980 in Caisse Regionale de on August 25, 2024 and sell it today you would earn a total of 289.00 from holding Caisse Regionale de or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Caisse Regionale de
Performance |
| Timeline |
| Ekinops SA |
| Caisse Regionale |
Ekinops SA and Caisse Regionale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Caisse Regionale
The main advantage of trading using opposite Ekinops SA and Caisse Regionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Caisse Regionale 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 Caisse Regionale will offset losses from the drop in Caisse Regionale's long position.| Ekinops SA vs. Sartorius Stedim Biotech | Ekinops SA vs. Lectra SA | Ekinops SA vs. Teleperformance SE | Ekinops SA vs. Trigano SA |
| Caisse Regionale vs. Caisse rgionale de | Caisse Regionale vs. Caisse Regionale de | Caisse Regionale vs. Manitou BF SA | Caisse Regionale vs. Ossiam Minimum Variance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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