Correlation Between ACTEOS SA and Quadient
Can any of the company-specific risk be diversified away by investing in both ACTEOS SA and Quadient 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 Quadient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACTEOS SA and Quadient SA, you can compare the effects of market volatilities on ACTEOS SA and Quadient 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 Quadient. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACTEOS SA and Quadient.
Diversification Opportunities for ACTEOS SA and Quadient
Very weak diversification
The 3 months correlation between ACTEOS and Quadient is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA and Quadient SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quadient SA 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 Quadient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quadient SA has no effect on the direction of ACTEOS SA i.e., ACTEOS SA and Quadient go up and down completely randomly.
Pair Corralation between ACTEOS SA and Quadient
Assuming the 90 days trading horizon ACTEOS SA is expected to under-perform the Quadient. In addition to that, ACTEOS SA is 1.47 times more volatile than Quadient SA. It trades about -0.02 of its total potential returns per unit of risk. Quadient SA is currently generating about 0.01 per unit of volatility. If you would invest 1,679 in Quadient SA on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Quadient SA or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
ACTEOS SA vs. Quadient SA
Performance |
| Timeline |
| ACTEOS SA |
| Quadient SA |
ACTEOS SA and Quadient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACTEOS SA and Quadient
The main advantage of trading using opposite ACTEOS SA and Quadient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACTEOS SA position performs unexpectedly, Quadient 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 Quadient will offset losses from the drop in Quadient's long position.| ACTEOS SA vs. Avenir Telecom SA | ACTEOS SA vs. ATEME SA | ACTEOS SA vs. Lectra SA | ACTEOS SA vs. BigBen Interactive |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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