Correlation Between Eiffage SA and Accor S
Can any of the company-specific risk be diversified away by investing in both Eiffage SA and Accor S 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 Eiffage SA and Accor S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eiffage SA and Accor S A, you can compare the effects of market volatilities on Eiffage SA and Accor S 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 Eiffage SA with a short position of Accor S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eiffage SA and Accor S.
Diversification Opportunities for Eiffage SA and Accor S
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eiffage and Accor is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eiffage SA and Accor S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accor S A and Eiffage SA 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 Eiffage SA are associated (or correlated) with Accor S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accor S A has no effect on the direction of Eiffage SA i.e., Eiffage SA and Accor S go up and down completely randomly.
Pair Corralation between Eiffage SA and Accor S
Assuming the 90 days trading horizon Eiffage SA is expected to under-perform the Accor S. But the stock apears to be less risky and, when comparing its historical volatility, Eiffage SA is 1.03 times less risky than Accor S. The stock trades about -0.02 of its potential returns per unit of risk. The Accor S A is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,173 in Accor S A on September 1, 2024 and sell it today you would earn a total of 1,195 from holding Accor S A or generate 37.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Eiffage SA vs. Accor S A
Performance |
| Timeline |
| Eiffage SA |
| Accor S A |
Eiffage SA and Accor S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eiffage SA and Accor S
The main advantage of trading using opposite Eiffage SA and Accor S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eiffage SA position performs unexpectedly, Accor S 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 Accor S will offset losses from the drop in Accor S's long position.| Eiffage SA vs. Vinci SA | Eiffage SA vs. Bouygues SA | Eiffage SA vs. Legrand SA | Eiffage SA vs. Compagnie de Saint Gobain |
| Accor S vs. Les Hotels Bav | Accor S vs. Groupe Partouche SA | Accor S vs. Centrale dAchat Franaise | Accor S vs. Manitou BF SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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