Correlation Between Union Technologies and ACTEOS SA
Can any of the company-specific risk be diversified away by investing in both Union Technologies and ACTEOS SA 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 ACTEOS SA 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 ACTEOS SA, you can compare the effects of market volatilities on Union Technologies and ACTEOS SA 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 ACTEOS SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Technologies and ACTEOS SA.
Diversification Opportunities for Union Technologies and ACTEOS SA
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Union and ACTEOS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Union Technologies Informatiqu and ACTEOS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACTEOS SA 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 ACTEOS SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACTEOS SA has no effect on the direction of Union Technologies i.e., Union Technologies and ACTEOS SA go up and down completely randomly.
Pair Corralation between Union Technologies and ACTEOS SA
Assuming the 90 days trading horizon Union Technologies Informatique is expected to generate 2.69 times more return on investment than ACTEOS SA. However, Union Technologies is 2.69 times more volatile than ACTEOS SA. It trades about 0.16 of its potential returns per unit of risk. ACTEOS SA is currently generating about 0.07 per unit of risk. If you would invest 20.00 in Union Technologies Informatique on November 3, 2024 and sell it today you would earn a total of 6.00 from holding Union Technologies Informatique or generate 30.0% 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. ACTEOS SA
Performance |
| Timeline |
| Union Technologies |
| ACTEOS SA |
Union Technologies and ACTEOS SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Technologies and ACTEOS SA
The main advantage of trading using opposite Union Technologies and ACTEOS SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Technologies position performs unexpectedly, ACTEOS SA 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 ACTEOS SA will offset losses from the drop in ACTEOS SA's long position.| Union Technologies vs. ACTEOS SA | Union Technologies vs. Memscap Regpt | Union Technologies vs. Linedata Services SA | Union Technologies vs. Lectra SA |
| ACTEOS SA vs. Avenir Telecom SA | ACTEOS SA vs. ATEME SA | ACTEOS SA vs. Lectra SA | ACTEOS SA vs. BigBen Interactive |
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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