Correlation Between Compagnie Plastic and Consolidated Communications
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Consolidated Communications 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 Consolidated Communications 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 Consolidated Communications Holdings, you can compare the effects of market volatilities on Compagnie Plastic and Consolidated Communications 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 Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Consolidated Communications.
Diversification Opportunities for Compagnie Plastic and Consolidated Communications
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Compagnie and Consolidated is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Consolidated Communications Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications 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 Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Consolidated Communications go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Consolidated Communications
Assuming the 90 days horizon Compagnie Plastic Omnium is expected to under-perform the Consolidated Communications. In addition to that, Compagnie Plastic is 2.48 times more volatile than Consolidated Communications Holdings. It trades about -0.09 of its total potential returns per unit of risk. Consolidated Communications Holdings is currently generating about 0.25 per unit of volatility. If you would invest 424.00 in Consolidated Communications Holdings on September 5, 2024 and sell it today you would earn a total of 22.00 from holding Consolidated Communications Holdings or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Consolidated Communications Ho
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Consolidated Communications |
Compagnie Plastic and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Consolidated Communications
The main advantage of trading using opposite Compagnie Plastic and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| Compagnie Plastic vs. PT Astra International | Compagnie Plastic vs. Superior Plus Corp | Compagnie Plastic vs. NMI Holdings | Compagnie Plastic vs. Origin Agritech |
| Consolidated Communications vs. PLAYMATES TOYS | Consolidated Communications vs. New Residential Investment | Consolidated Communications vs. CI GAMES SA | Consolidated Communications vs. Media and Games |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |