Correlation Between ACTEOS SA and Capgemini
Can any of the company-specific risk be diversified away by investing in both ACTEOS SA and Capgemini 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 Capgemini into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACTEOS SA and Capgemini SE, you can compare the effects of market volatilities on ACTEOS SA and Capgemini 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 Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACTEOS SA and Capgemini.
Diversification Opportunities for ACTEOS SA and Capgemini
Poor diversification
The 3 months correlation between ACTEOS and Capgemini is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE 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 Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of ACTEOS SA i.e., ACTEOS SA and Capgemini go up and down completely randomly.
Pair Corralation between ACTEOS SA and Capgemini
Assuming the 90 days trading horizon ACTEOS SA is expected to generate 1.38 times more return on investment than Capgemini. However, ACTEOS SA is 1.38 times more volatile than Capgemini SE. It trades about -0.07 of its potential returns per unit of risk. Capgemini SE is currently generating about -0.09 per unit of risk. If you would invest 134.00 in ACTEOS SA on August 30, 2024 and sell it today you would lose (26.00) from holding ACTEOS SA or give up 19.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACTEOS SA vs. Capgemini SE
Performance |
| Timeline |
| ACTEOS SA |
| Capgemini SE |
ACTEOS SA and Capgemini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACTEOS SA and Capgemini
The main advantage of trading using opposite ACTEOS SA and Capgemini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACTEOS SA position performs unexpectedly, Capgemini 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 Capgemini will offset losses from the drop in Capgemini's long position.| ACTEOS SA vs. Thales SA | ACTEOS SA vs. Safran SA | ACTEOS SA vs. Air Liquide SA | ACTEOS SA vs. Capgemini SE |
| Capgemini vs. Atos SE | Capgemini vs. Compagnie de Saint Gobain | Capgemini vs. Pernod Ricard SA | Capgemini vs. Bouygues 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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