Correlation Between EssilorLuxottica and Haemonetics
Can any of the company-specific risk be diversified away by investing in both EssilorLuxottica and Haemonetics 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 EssilorLuxottica and Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EssilorLuxottica Socit anonyme and Haemonetics, you can compare the effects of market volatilities on EssilorLuxottica and Haemonetics 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 EssilorLuxottica with a short position of Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EssilorLuxottica and Haemonetics.
Diversification Opportunities for EssilorLuxottica and Haemonetics
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between EssilorLuxottica and Haemonetics is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding EssilorLuxottica Socit anonyme and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics and EssilorLuxottica 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 EssilorLuxottica Socit anonyme are associated (or correlated) with Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of EssilorLuxottica i.e., EssilorLuxottica and Haemonetics go up and down completely randomly.
Pair Corralation between EssilorLuxottica and Haemonetics
Assuming the 90 days horizon EssilorLuxottica Socit anonyme is expected to generate 1.1 times more return on investment than Haemonetics. However, EssilorLuxottica is 1.1 times more volatile than Haemonetics. It trades about -0.08 of its potential returns per unit of risk. Haemonetics is currently generating about -0.11 per unit of risk. If you would invest 30,733 in EssilorLuxottica Socit anonyme on January 18, 2025 and sell it today you would lose (2,867) from holding EssilorLuxottica Socit anonyme or give up 9.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EssilorLuxottica Socit anonyme vs. Haemonetics
Performance |
| Timeline |
| EssilorLuxottica Socit |
| Haemonetics |
EssilorLuxottica and Haemonetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EssilorLuxottica and Haemonetics
The main advantage of trading using opposite EssilorLuxottica and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EssilorLuxottica position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.| EssilorLuxottica vs. Coloplast A | EssilorLuxottica vs. Carl Zeiss Meditec | EssilorLuxottica vs. Carl Zeiss Meditec | EssilorLuxottica vs. Hoya Corp |
| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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