Correlation Between Elior SCA and SPIE SA
Can any of the company-specific risk be diversified away by investing in both Elior SCA and SPIE SA 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 Elior SCA and SPIE SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elior SCA and SPIE SA, you can compare the effects of market volatilities on Elior SCA and SPIE SA 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 Elior SCA with a short position of SPIE SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elior SCA and SPIE SA.
Diversification Opportunities for Elior SCA and SPIE SA
Modest diversification
The 3 months correlation between Elior and SPIE is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Elior SCA and SPIE SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPIE SA and Elior SCA 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 Elior SCA are associated (or correlated) with SPIE SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPIE SA has no effect on the direction of Elior SCA i.e., Elior SCA and SPIE SA go up and down completely randomly.
Pair Corralation between Elior SCA and SPIE SA
Assuming the 90 days trading horizon Elior SCA is expected to under-perform the SPIE SA. In addition to that, Elior SCA is 2.01 times more volatile than SPIE SA. It trades about -0.05 of its total potential returns per unit of risk. SPIE SA is currently generating about -0.1 per unit of volatility. If you would invest 3,780 in SPIE SA on September 1, 2024 and sell it today you would lose (800.00) from holding SPIE SA or give up 21.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elior SCA vs. SPIE SA
Performance |
| Timeline |
| Elior SCA |
| SPIE SA |
Elior SCA and SPIE SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elior SCA and SPIE SA
The main advantage of trading using opposite Elior SCA and SPIE SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elior SCA position performs unexpectedly, SPIE SA 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 SPIE SA will offset losses from the drop in SPIE SA's long position.| Elior SCA vs. Gaztransport Technigaz SAS | Elior SCA vs. Covivio Hotels | Elior SCA vs. Onlineformapro SA | Elior SCA vs. Broadpeak 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |