Correlation Between Eutelsat Communications and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both Eutelsat Communications and Credit Agricole 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 Eutelsat Communications and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eutelsat Communications SA and Credit Agricole SA, you can compare the effects of market volatilities on Eutelsat Communications and Credit Agricole 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 Eutelsat Communications with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eutelsat Communications and Credit Agricole.
Diversification Opportunities for Eutelsat Communications and Credit Agricole
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eutelsat and Credit is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eutelsat Communications SA and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and Eutelsat Communications 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 Eutelsat Communications SA are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of Eutelsat Communications i.e., Eutelsat Communications and Credit Agricole go up and down completely randomly.
Pair Corralation between Eutelsat Communications and Credit Agricole
Assuming the 90 days trading horizon Eutelsat Communications SA is expected to under-perform the Credit Agricole. In addition to that, Eutelsat Communications is 1.84 times more volatile than Credit Agricole SA. It trades about -0.2 of its total potential returns per unit of risk. Credit Agricole SA is currently generating about -0.08 per unit of volatility. If you would invest 1,376 in Credit Agricole SA on August 28, 2024 and sell it today you would lose (83.00) from holding Credit Agricole SA or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eutelsat Communications SA vs. Credit Agricole SA
Performance |
| Timeline |
| Eutelsat Communications |
| Credit Agricole SA |
Eutelsat Communications and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eutelsat Communications and Credit Agricole
The main advantage of trading using opposite Eutelsat Communications and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eutelsat Communications position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.| Eutelsat Communications vs. Vallourec | Eutelsat Communications vs. Genfit | Eutelsat Communications vs. Innate Pharma | Eutelsat Communications vs. Etablissements Maurel et |
| Credit Agricole vs. Societe Generale SA | Credit Agricole vs. BNP Paribas SA | Credit Agricole vs. AXA SA | Credit Agricole vs. Orange 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |