Correlation Between Farmers and Crédit Agricole
Can any of the company-specific risk be diversified away by investing in both Farmers and Crédit Agricole 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 Farmers and Crédit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmers And Merchants and Crdit Agricole SA, you can compare the effects of market volatilities on Farmers and Crédit Agricole 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 Farmers with a short position of Crédit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmers and Crédit Agricole.
Diversification Opportunities for Farmers and Crédit Agricole
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Farmers and Crédit is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Farmers And Merchants and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA and Farmers 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 Farmers And Merchants are associated (or correlated) with Crédit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of Farmers i.e., Farmers and Crédit Agricole go up and down completely randomly.
Pair Corralation between Farmers and Crédit Agricole
Given the investment horizon of 90 days Farmers And Merchants is expected to under-perform the Crédit Agricole. But the otc stock apears to be less risky and, when comparing its historical volatility, Farmers And Merchants is 2.37 times less risky than Crédit Agricole. The otc stock trades about -0.02 of its potential returns per unit of risk. The Crdit Agricole SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 851.00 in Crdit Agricole SA on September 2, 2024 and sell it today you would earn a total of 445.00 from holding Crdit Agricole SA or generate 52.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.5% |
| Values | Daily Returns |
Farmers And Merchants vs. Crdit Agricole SA
Performance |
| Timeline |
| Farmers And Merchants |
| Crdit Agricole SA |
Farmers and Crédit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmers and Crédit Agricole
The main advantage of trading using opposite Farmers and Crédit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmers position performs unexpectedly, Crédit Agricole 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 Crédit Agricole will offset losses from the drop in Crédit Agricole's long position.| Farmers vs. HUMANA INC | Farmers vs. SCOR PK | Farmers vs. Aquagold International | Farmers vs. Thrivent High Yield |
| Crédit Agricole vs. Piraeus Bank SA | Crédit Agricole vs. Turkiye Garanti Bankasi | Crédit Agricole vs. Uwharrie Capital Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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