Correlation Between Engie SA and Neotion SA
Can any of the company-specific risk be diversified away by investing in both Engie SA and Neotion 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 Engie SA and Neotion SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Engie SA and Neotion SA, you can compare the effects of market volatilities on Engie SA and Neotion 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 Engie SA with a short position of Neotion SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Engie SA and Neotion SA.
Diversification Opportunities for Engie SA and Neotion SA
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Engie and Neotion is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Engie SA and Neotion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neotion SA and Engie 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 Engie SA are associated (or correlated) with Neotion SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neotion SA has no effect on the direction of Engie SA i.e., Engie SA and Neotion SA go up and down completely randomly.
Pair Corralation between Engie SA and Neotion SA
If you would invest 50.00 in Neotion SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Neotion SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Engie SA vs. Neotion SA
Performance |
| Timeline |
| Engie SA |
| Neotion SA |
Engie SA and Neotion SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Engie SA and Neotion SA
The main advantage of trading using opposite Engie SA and Neotion SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Engie SA position performs unexpectedly, Neotion 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 Neotion SA will offset losses from the drop in Neotion SA's long position.| Engie SA vs. Orange SA | Engie SA vs. Veolia Environnement VE | Engie SA vs. AXA SA | Engie SA vs. TotalEnergies SE |
| Neotion SA vs. Hitechpros | Neotion SA vs. Technip Energies BV | Neotion SA vs. Seche Environnem | Neotion SA vs. X Fab Silicon |
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
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |