Correlation Between Compagnie Plastic and HEMISPHERE EGY
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and HEMISPHERE EGY 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 HEMISPHERE EGY 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 HEMISPHERE EGY, you can compare the effects of market volatilities on Compagnie Plastic and HEMISPHERE EGY 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 HEMISPHERE EGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and HEMISPHERE EGY.
Diversification Opportunities for Compagnie Plastic and HEMISPHERE EGY
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Compagnie and HEMISPHERE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and HEMISPHERE EGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEMISPHERE EGY 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 HEMISPHERE EGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEMISPHERE EGY has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and HEMISPHERE EGY go up and down completely randomly.
Pair Corralation between Compagnie Plastic and HEMISPHERE EGY
Assuming the 90 days horizon Compagnie Plastic Omnium is expected to under-perform the HEMISPHERE EGY. In addition to that, Compagnie Plastic is 1.76 times more volatile than HEMISPHERE EGY. It trades about -0.02 of its total potential returns per unit of risk. HEMISPHERE EGY is currently generating about 0.09 per unit of volatility. If you would invest 68.00 in HEMISPHERE EGY on October 28, 2024 and sell it today you would earn a total of 55.00 from holding HEMISPHERE EGY or generate 80.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. HEMISPHERE EGY
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| HEMISPHERE EGY |
Compagnie Plastic and HEMISPHERE EGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and HEMISPHERE EGY
The main advantage of trading using opposite Compagnie Plastic and HEMISPHERE EGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, HEMISPHERE EGY 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 HEMISPHERE EGY will offset losses from the drop in HEMISPHERE EGY's long position.| Compagnie Plastic vs. Dno ASA | Compagnie Plastic vs. DENSO P ADR | Compagnie Plastic vs. Aptiv PLC | Compagnie Plastic vs. Bridgestone |
| HEMISPHERE EGY vs. Nexstar Media Group | HEMISPHERE EGY vs. H2O Retailing | HEMISPHERE EGY vs. Prosiebensat 1 Media | HEMISPHERE EGY vs. CANON MARKETING JP |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |