Correlation Between Compagnie Plastic and News
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and News 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 News 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 News Corporation, you can compare the effects of market volatilities on Compagnie Plastic and News 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 News. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and News.
Diversification Opportunities for Compagnie Plastic and News
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Compagnie and News is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and News Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News 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 News. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and News go up and down completely randomly.
Pair Corralation between Compagnie Plastic and News
Assuming the 90 days horizon Compagnie Plastic Omnium is expected to under-perform the News. In addition to that, Compagnie Plastic is 1.54 times more volatile than News Corporation. It trades about -0.16 of its total potential returns per unit of risk. News Corporation is currently generating about 0.36 per unit of volatility. If you would invest 2,440 in News Corporation on August 29, 2024 and sell it today you would earn a total of 340.00 from holding News Corporation or generate 13.93% 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. News Corp.
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| News |
Compagnie Plastic and News Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and News
The main advantage of trading using opposite Compagnie Plastic and News positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, News 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 News will offset losses from the drop in News' long position.| Compagnie Plastic vs. Superior Plus Corp | Compagnie Plastic vs. NMI Holdings | Compagnie Plastic vs. Origin Agritech | Compagnie Plastic vs. SIVERS SEMICONDUCTORS AB |
| News vs. Compagnie Plastic Omnium | News vs. Meli Hotels International | News vs. Eagle Materials | News vs. Xenia Hotels Resorts |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |