Correlation Between Eurofins Scientific and Coface SA
Can any of the company-specific risk be diversified away by investing in both Eurofins Scientific 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 Eurofins Scientific and Coface SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurofins Scientific SE and Coface SA, you can compare the effects of market volatilities on Eurofins Scientific 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 Eurofins Scientific with a short position of Coface SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurofins Scientific and Coface SA.
Diversification Opportunities for Eurofins Scientific and Coface SA
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eurofins and Coface is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eurofins Scientific SE and Coface SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coface SA and Eurofins Scientific 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 Eurofins Scientific SE 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 Eurofins Scientific i.e., Eurofins Scientific and Coface SA go up and down completely randomly.
Pair Corralation between Eurofins Scientific and Coface SA
Assuming the 90 days trading horizon Eurofins Scientific SE is expected to generate 0.83 times more return on investment than Coface SA. However, Eurofins Scientific SE is 1.2 times less risky than Coface SA. It trades about 0.08 of its potential returns per unit of risk. Coface SA is currently generating about -0.04 per unit of risk. If you would invest 4,588 in Eurofins Scientific SE on September 2, 2024 and sell it today you would earn a total of 91.00 from holding Eurofins Scientific SE or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurofins Scientific SE vs. Coface SA
Performance |
| Timeline |
| Eurofins Scientific |
| Coface SA |
Eurofins Scientific and Coface SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurofins Scientific and Coface SA
The main advantage of trading using opposite Eurofins Scientific and Coface SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurofins Scientific 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.| Eurofins Scientific vs. Medincell SA | Eurofins Scientific vs. Lexibook Linguistic Electronic | Eurofins Scientific vs. Sensorion SA | Eurofins Scientific vs. Manitou BF SA |
| Coface SA vs. Amundi SA | Coface SA vs. Teleperformance SE | Coface SA vs. Eurofins Scientific SE | Coface SA vs. Sartorius Stedim Biotech |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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