Correlation Between OAKTRSPECLENDNEW and Vivendi SE
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and Vivendi SE 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 OAKTRSPECLENDNEW and Vivendi SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and Vivendi SE, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and Vivendi SE 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 OAKTRSPECLENDNEW with a short position of Vivendi SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and Vivendi SE.
Diversification Opportunities for OAKTRSPECLENDNEW and Vivendi SE
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OAKTRSPECLENDNEW and Vivendi is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and Vivendi SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SE and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with Vivendi SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SE has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and Vivendi SE go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and Vivendi SE
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to generate 5.09 times less return on investment than Vivendi SE. But when comparing it to its historical volatility, OAKTRSPECLENDNEW is 3.47 times less risky than Vivendi SE. It trades about 0.08 of its potential returns per unit of risk. Vivendi SE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Vivendi SE on November 4, 2024 and sell it today you would earn a total of 18.00 from holding Vivendi SE or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. Vivendi SE
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| Vivendi SE |
OAKTRSPECLENDNEW and Vivendi SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and Vivendi SE
The main advantage of trading using opposite OAKTRSPECLENDNEW and Vivendi SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, Vivendi SE 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 Vivendi SE will offset losses from the drop in Vivendi SE's long position.| OAKTRSPECLENDNEW vs. Gaming and Leisure | OAKTRSPECLENDNEW vs. China Eastern Airlines | OAKTRSPECLENDNEW vs. ANTA SPORTS PRODUCT | OAKTRSPECLENDNEW vs. LG Display Co |
| Vivendi SE vs. Coeur Mining | Vivendi SE vs. Ross Stores | Vivendi SE vs. FIREWEED METALS P | Vivendi SE vs. GREENX METALS LTD |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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