Correlation Between ACTEOS SA and Kerlink SAS
Can any of the company-specific risk be diversified away by investing in both ACTEOS SA and Kerlink SAS 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 ACTEOS SA and Kerlink SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACTEOS SA and Kerlink SAS, you can compare the effects of market volatilities on ACTEOS SA and Kerlink SAS 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 ACTEOS SA with a short position of Kerlink SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACTEOS SA and Kerlink SAS.
Diversification Opportunities for ACTEOS SA and Kerlink SAS
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between ACTEOS and Kerlink is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA and Kerlink SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerlink SAS and ACTEOS 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 ACTEOS SA are associated (or correlated) with Kerlink SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerlink SAS has no effect on the direction of ACTEOS SA i.e., ACTEOS SA and Kerlink SAS go up and down completely randomly.
Pair Corralation between ACTEOS SA and Kerlink SAS
Assuming the 90 days trading horizon ACTEOS SA is expected to under-perform the Kerlink SAS. But the stock apears to be less risky and, when comparing its historical volatility, ACTEOS SA is 2.09 times less risky than Kerlink SAS. The stock trades about -0.02 of its potential returns per unit of risk. The Kerlink SAS is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Kerlink SAS on August 29, 2024 and sell it today you would lose (48.00) from holding Kerlink SAS or give up 48.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACTEOS SA vs. Kerlink SAS
Performance |
| Timeline |
| ACTEOS SA |
| Kerlink SAS |
ACTEOS SA and Kerlink SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACTEOS SA and Kerlink SAS
The main advantage of trading using opposite ACTEOS SA and Kerlink SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACTEOS SA position performs unexpectedly, Kerlink SAS 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 Kerlink SAS will offset losses from the drop in Kerlink SAS's long position.| ACTEOS SA vs. Thales SA | ACTEOS SA vs. Safran SA | ACTEOS SA vs. Air Liquide SA | ACTEOS SA vs. Capgemini SE |
| Kerlink SAS vs. Sartorius Stedim Biotech | Kerlink SAS vs. Lectra SA | Kerlink SAS vs. Teleperformance SE | Kerlink SAS vs. Trigano 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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