Correlation Between Everest Group and COFACE SA
Can any of the company-specific risk be diversified away by investing in both Everest Group and COFACE 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 Everest Group and COFACE SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everest Group and COFACE SA, you can compare the effects of market volatilities on Everest Group and COFACE 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 Everest Group with a short position of COFACE SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everest Group and COFACE SA.
Diversification Opportunities for Everest Group and COFACE SA
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Everest and COFACE is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Everest Group and COFACE SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFACE SA and Everest Group 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 Everest Group are associated (or correlated) with COFACE SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFACE SA has no effect on the direction of Everest Group i.e., Everest Group and COFACE SA go up and down completely randomly.
Pair Corralation between Everest Group and COFACE SA
Assuming the 90 days horizon Everest Group is expected to generate 17.06 times less return on investment than COFACE SA. But when comparing it to its historical volatility, Everest Group is 1.06 times less risky than COFACE SA. It trades about 0.01 of its potential returns per unit of risk. COFACE SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,589 in COFACE SA on December 13, 2024 and sell it today you would earn a total of 43.00 from holding COFACE SA or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everest Group vs. COFACE SA
Performance |
| Timeline |
| Everest Group |
| COFACE SA |
Everest Group and COFACE SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everest Group and COFACE SA
The main advantage of trading using opposite Everest Group and COFACE SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everest Group position performs unexpectedly, COFACE 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 COFACE SA will offset losses from the drop in COFACE SA's long position.| Everest Group vs. Japan Asia Investment | Everest Group vs. SOGECLAIR SA INH | Everest Group vs. Chuangs China Investments | Everest Group vs. SYSTEMAIR AB |
| COFACE SA vs. MUENCHRUECKUNSADR 110 | COFACE SA vs. HANNRUECKVSE ADR 12ON | COFACE SA vs. Everest Group | COFACE SA vs. Reinsurance Group of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |