Correlation Between Exail Technologies and Latcore SA
Can any of the company-specific risk be diversified away by investing in both Exail Technologies and Latcore 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 Exail Technologies and Latcore SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exail Technologies SA and Latcore SA, you can compare the effects of market volatilities on Exail Technologies and Latcore 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 Exail Technologies with a short position of Latcore SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exail Technologies and Latcore SA.
Diversification Opportunities for Exail Technologies and Latcore SA
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exail and Latcore is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies SA and Latcore SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latcore SA and Exail Technologies 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 Exail Technologies SA are associated (or correlated) with Latcore SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latcore SA has no effect on the direction of Exail Technologies i.e., Exail Technologies and Latcore SA go up and down completely randomly.
Pair Corralation between Exail Technologies and Latcore SA
Assuming the 90 days trading horizon Exail Technologies is expected to generate 53.6 times less return on investment than Latcore SA. But when comparing it to its historical volatility, Exail Technologies SA is 12.5 times less risky than Latcore SA. It trades about 0.01 of its potential returns per unit of risk. Latcore SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Latcore SA on November 2, 2024 and sell it today you would lose (10.10) from holding Latcore SA or give up 91.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Exail Technologies SA vs. Latcore SA
Performance |
| Timeline |
| Exail Technologies |
| Latcore SA |
Exail Technologies and Latcore SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exail Technologies and Latcore SA
The main advantage of trading using opposite Exail Technologies and Latcore SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exail Technologies position performs unexpectedly, Latcore 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 Latcore SA will offset losses from the drop in Latcore SA's long position.| Exail Technologies vs. Sogeclair SA | Exail Technologies vs. Jacquet Metal Service | Exail Technologies vs. X Fab Silicon | Exail Technologies vs. Seche Environnem |
| Latcore SA vs. Derichebourg | Latcore SA vs. Casino Guichard Perrachon | Latcore SA vs. Etablissements Maurel et |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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