Correlation Between Flexopack Socit and E Pairis
Can any of the company-specific risk be diversified away by investing in both Flexopack Socit and E Pairis 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 Flexopack Socit and E Pairis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexopack Socit Anonyme and E Pairis SA, you can compare the effects of market volatilities on Flexopack Socit and E Pairis 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 Flexopack Socit with a short position of E Pairis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexopack Socit and E Pairis.
Diversification Opportunities for Flexopack Socit and E Pairis
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flexopack and PAIR is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Flexopack Socit Anonyme and E Pairis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Pairis SA and Flexopack Socit 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 Flexopack Socit Anonyme are associated (or correlated) with E Pairis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Pairis SA has no effect on the direction of Flexopack Socit i.e., Flexopack Socit and E Pairis go up and down completely randomly.
Pair Corralation between Flexopack Socit and E Pairis
Assuming the 90 days trading horizon Flexopack Socit Anonyme is expected to under-perform the E Pairis. But the stock apears to be less risky and, when comparing its historical volatility, Flexopack Socit Anonyme is 1.28 times less risky than E Pairis. The stock trades about -0.06 of its potential returns per unit of risk. The E Pairis SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 96.00 in E Pairis SA on August 25, 2024 and sell it today you would lose (1.00) from holding E Pairis SA or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexopack Socit Anonyme vs. E Pairis SA
Performance |
| Timeline |
| Flexopack Socit Anonyme |
| E Pairis SA |
Flexopack Socit and E Pairis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexopack Socit and E Pairis
The main advantage of trading using opposite Flexopack Socit and E Pairis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexopack Socit position performs unexpectedly, E Pairis 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 E Pairis will offset losses from the drop in E Pairis' long position.| Flexopack Socit vs. Thrace Plastics Holding | Flexopack Socit vs. VIS Containers Manufacturing | Flexopack Socit vs. E Pairis SA |
| E Pairis vs. Thrace Plastics Holding | E Pairis vs. Flexopack Socit Anonyme | E Pairis vs. VIS Containers Manufacturing |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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