Correlation Between ACTEOS SA and Plastiques
Can any of the company-specific risk be diversified away by investing in both ACTEOS SA and Plastiques 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 Plastiques into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACTEOS SA and Plastiques du Val, you can compare the effects of market volatilities on ACTEOS SA and Plastiques 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 Plastiques. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACTEOS SA and Plastiques.
Diversification Opportunities for ACTEOS SA and Plastiques
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACTEOS and Plastiques is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA and Plastiques du Val in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastiques du Val 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 Plastiques. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastiques du Val has no effect on the direction of ACTEOS SA i.e., ACTEOS SA and Plastiques go up and down completely randomly.
Pair Corralation between ACTEOS SA and Plastiques
Assuming the 90 days trading horizon ACTEOS SA is expected to generate 0.88 times more return on investment than Plastiques. However, ACTEOS SA is 1.13 times less risky than Plastiques. It trades about 0.0 of its potential returns per unit of risk. Plastiques du Val is currently generating about -0.1 per unit of risk. If you would invest 128.00 in ACTEOS SA on August 26, 2024 and sell it today you would lose (10.00) from holding ACTEOS SA or give up 7.81% 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. Plastiques du Val
Performance |
| Timeline |
| ACTEOS SA |
| Plastiques du Val |
ACTEOS SA and Plastiques Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACTEOS SA and Plastiques
The main advantage of trading using opposite ACTEOS SA and Plastiques positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACTEOS SA position performs unexpectedly, Plastiques 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 Plastiques will offset losses from the drop in Plastiques' long position.| ACTEOS SA vs. Thales SA | ACTEOS SA vs. Safran SA | ACTEOS SA vs. Air Liquide SA | ACTEOS SA vs. Capgemini SE |
| Plastiques vs. Groupe Guillin SA | Plastiques vs. Groupe Partouche SA | Plastiques vs. Passat Socit Anonyme | Plastiques vs. Akwel 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |