Correlation Between Union Technologies and Covivio Hotels
Can any of the company-specific risk be diversified away by investing in both Union Technologies and Covivio Hotels 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 Union Technologies and Covivio Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Technologies Informatique and Covivio Hotels, you can compare the effects of market volatilities on Union Technologies and Covivio Hotels 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 Union Technologies with a short position of Covivio Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Technologies and Covivio Hotels.
Diversification Opportunities for Union Technologies and Covivio Hotels
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Union and Covivio is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Union Technologies Informatiqu and Covivio Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Covivio Hotels and Union Technologies 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 Union Technologies Informatique are associated (or correlated) with Covivio Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Covivio Hotels has no effect on the direction of Union Technologies i.e., Union Technologies and Covivio Hotels go up and down completely randomly.
Pair Corralation between Union Technologies and Covivio Hotels
Assuming the 90 days trading horizon Union Technologies Informatique is expected to generate 8.35 times more return on investment than Covivio Hotels. However, Union Technologies is 8.35 times more volatile than Covivio Hotels. It trades about 0.02 of its potential returns per unit of risk. Covivio Hotels is currently generating about -0.12 per unit of risk. If you would invest 20.00 in Union Technologies Informatique on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Union Technologies Informatique or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Technologies Informatiqu vs. Covivio Hotels
Performance |
| Timeline |
| Union Technologies |
| Covivio Hotels |
Union Technologies and Covivio Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Technologies and Covivio Hotels
The main advantage of trading using opposite Union Technologies and Covivio Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Technologies position performs unexpectedly, Covivio Hotels 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 Covivio Hotels will offset losses from the drop in Covivio Hotels' long position.| Union Technologies vs. Neurones | Union Technologies vs. Infotel SA | Union Technologies vs. Alten SA | Union Technologies vs. Manitou BF SA |
| Covivio Hotels vs. Covivio SA | Covivio Hotels vs. Altarea SCA | Covivio Hotels vs. Carmila SA | Covivio Hotels vs. Icade 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |