Correlation Between Eutelsat Communications and Exail Technologies
Can any of the company-specific risk be diversified away by investing in both Eutelsat Communications and Exail Technologies 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 Exail Technologies 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 Exail Technologies SA, you can compare the effects of market volatilities on Eutelsat Communications and Exail Technologies 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 Exail Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eutelsat Communications and Exail Technologies.
Diversification Opportunities for Eutelsat Communications and Exail Technologies
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eutelsat and Exail is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eutelsat Communications SA and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies 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 Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Eutelsat Communications i.e., Eutelsat Communications and Exail Technologies go up and down completely randomly.
Pair Corralation between Eutelsat Communications and Exail Technologies
Assuming the 90 days trading horizon Eutelsat Communications SA is expected to under-perform the Exail Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Eutelsat Communications SA is 1.02 times less risky than Exail Technologies. The stock trades about -0.17 of its potential returns per unit of risk. The Exail Technologies SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,810 in Exail Technologies SA on August 24, 2024 and sell it today you would earn a total of 20.00 from holding Exail Technologies SA or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eutelsat Communications SA vs. Exail Technologies SA
Performance |
| Timeline |
| Eutelsat Communications |
| Exail Technologies |
Eutelsat Communications and Exail Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eutelsat Communications and Exail Technologies
The main advantage of trading using opposite Eutelsat Communications and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eutelsat Communications position performs unexpectedly, Exail Technologies 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.| Eutelsat Communications vs. SES S A | Eutelsat Communications vs. Rubis SCA | Eutelsat Communications vs. Coface SA | Eutelsat Communications vs. SCOR SE |
| Exail Technologies vs. Airbus Group SE | Exail Technologies vs. Safran SA | Exail Technologies vs. Thales SA | Exail Technologies vs. Dassault Aviation 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |