Correlation Between Compagnie Plastic and Heartland Financial
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Heartland Financial 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 Compagnie Plastic and Heartland Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and Heartland Financial USA, you can compare the effects of market volatilities on Compagnie Plastic and Heartland Financial 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 Compagnie Plastic with a short position of Heartland Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Heartland Financial.
Diversification Opportunities for Compagnie Plastic and Heartland Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Compagnie and Heartland is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Heartland Financial USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartland Financial USA and Compagnie Plastic 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 Compagnie Plastic Omnium are associated (or correlated) with Heartland Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartland Financial USA has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Heartland Financial go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Heartland Financial
Assuming the 90 days horizon Compagnie Plastic Omnium is expected to under-perform the Heartland Financial. In addition to that, Compagnie Plastic is 1.02 times more volatile than Heartland Financial USA. It trades about -0.01 of its total potential returns per unit of risk. Heartland Financial USA is currently generating about 0.14 per unit of volatility. If you would invest 2,740 in Heartland Financial USA on September 14, 2024 and sell it today you would earn a total of 3,560 from holding Heartland Financial USA or generate 129.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Heartland Financial USA
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Heartland Financial USA |
Compagnie Plastic and Heartland Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Heartland Financial
The main advantage of trading using opposite Compagnie Plastic and Heartland Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Heartland Financial 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 Heartland Financial will offset losses from the drop in Heartland Financial's long position.| Compagnie Plastic vs. Bridgestone | Compagnie Plastic vs. Superior Plus Corp | Compagnie Plastic vs. SIVERS SEMICONDUCTORS AB | Compagnie Plastic vs. Norsk Hydro ASA |
| Heartland Financial vs. EAGLE MATERIALS | Heartland Financial vs. Heidelberg Materials AG | Heartland Financial vs. Compagnie Plastic Omnium | Heartland Financial vs. Mitsubishi Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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