Correlation Between Getlink SE and Compagnie
Can any of the company-specific risk be diversified away by investing in both Getlink SE and Compagnie 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 Getlink SE and Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getlink SE and Compagnie de Chemins, you can compare the effects of market volatilities on Getlink SE and Compagnie 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 Getlink SE with a short position of Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getlink SE and Compagnie.
Diversification Opportunities for Getlink SE and Compagnie
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getlink and Compagnie is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Getlink SE and Compagnie de Chemins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Chemins and Getlink SE 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 Getlink SE are associated (or correlated) with Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Chemins has no effect on the direction of Getlink SE i.e., Getlink SE and Compagnie go up and down completely randomly.
Pair Corralation between Getlink SE and Compagnie
Assuming the 90 days trading horizon Getlink SE is expected to under-perform the Compagnie. But the stock apears to be less risky and, when comparing its historical volatility, Getlink SE is 1.48 times less risky than Compagnie. The stock trades about -0.01 of its potential returns per unit of risk. The Compagnie de Chemins is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 65,500 in Compagnie de Chemins on August 26, 2024 and sell it today you would earn a total of 24,500 from holding Compagnie de Chemins or generate 37.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Getlink SE vs. Compagnie de Chemins
Performance |
| Timeline |
| Getlink SE |
| Compagnie de Chemins |
Getlink SE and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getlink SE and Compagnie
The main advantage of trading using opposite Getlink SE and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getlink SE position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| Getlink SE vs. Manitou BF SA | Getlink SE vs. Ossiam Minimum Variance | Getlink SE vs. Granite 3x LVMH | Getlink SE vs. 21Shares Polkadot ETP |
| Compagnie vs. Sogeclair SA | Compagnie vs. Gaztransport Technigaz SAS | Compagnie vs. Hitechpros | Compagnie vs. Avenir Telecom 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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