Correlation Between HEIA and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both HEIA and Socit Gnrale 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 HEIA and Socit Gnrale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEIA and Socit Gnrale Socit, you can compare the effects of market volatilities on HEIA and Socit Gnrale 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 HEIA with a short position of Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEIA and Socit Gnrale.
Diversification Opportunities for HEIA and Socit Gnrale
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HEIA and Socit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding HEIA and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit and HEIA 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 HEIA are associated (or correlated) with Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of HEIA i.e., HEIA and Socit Gnrale go up and down completely randomly.
Pair Corralation between HEIA and Socit Gnrale
Given the investment horizon of 90 days HEIA is expected to generate 0.76 times more return on investment than Socit Gnrale. However, HEIA is 1.31 times less risky than Socit Gnrale. It trades about 0.08 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about 0.03 per unit of risk. If you would invest 12,346 in HEIA on August 29, 2024 and sell it today you would earn a total of 7,776 from holding HEIA or generate 62.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 88.51% |
| Values | Daily Returns |
HEIA vs. Socit Gnrale Socit
Performance |
| Timeline |
| HEIA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Socit Gnrale Socit |
HEIA and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEIA and Socit Gnrale
The main advantage of trading using opposite HEIA and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEIA position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.| HEIA vs. Merit Medical Systems | HEIA vs. Apollo Medical Holdings | HEIA vs. MEDICAL FACILITIES NEW | HEIA vs. SBM OFFSHORE |
| Socit Gnrale vs. BNP Paribas SA | Socit Gnrale vs. Deutsche Bank Aktiengesellschaft | Socit Gnrale vs. Santander Bank Polska |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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