Correlation Between Compagnie Plastic and Fastly
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Fastly 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 Fastly 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 Fastly Inc, you can compare the effects of market volatilities on Compagnie Plastic and Fastly 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 Fastly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Fastly.
Diversification Opportunities for Compagnie Plastic and Fastly
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Compagnie and Fastly is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Fastly Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastly Inc 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 Fastly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastly Inc has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Fastly go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Fastly
Assuming the 90 days horizon Compagnie Plastic Omnium is expected to under-perform the Fastly. But the stock apears to be less risky and, when comparing its historical volatility, Compagnie Plastic Omnium is 2.11 times less risky than Fastly. The stock trades about -0.16 of its potential returns per unit of risk. The Fastly Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Fastly Inc on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Fastly Inc or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Fastly Inc
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Fastly Inc |
Compagnie Plastic and Fastly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Fastly
The main advantage of trading using opposite Compagnie Plastic and Fastly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Fastly 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 Fastly will offset losses from the drop in Fastly's long position.| Compagnie Plastic vs. Superior Plus Corp | Compagnie Plastic vs. NMI Holdings | Compagnie Plastic vs. Origin Agritech | Compagnie Plastic vs. SIVERS SEMICONDUCTORS AB |
| Fastly vs. Superior Plus Corp | Fastly vs. NMI Holdings | Fastly vs. Origin Agritech | Fastly vs. SIVERS SEMICONDUCTORS AB |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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