Correlation Between Immobel and Celyad SA
Can any of the company-specific risk be diversified away by investing in both Immobel and Celyad 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 Immobel and Celyad SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immobel and Celyad SA, you can compare the effects of market volatilities on Immobel and Celyad 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 Immobel with a short position of Celyad SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immobel and Celyad SA.
Diversification Opportunities for Immobel and Celyad SA
Pay attention - limited upside
The 3 months correlation between Immobel and Celyad is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Immobel and Celyad SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celyad SA and Immobel 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 Immobel are associated (or correlated) with Celyad SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celyad SA has no effect on the direction of Immobel i.e., Immobel and Celyad SA go up and down completely randomly.
Pair Corralation between Immobel and Celyad SA
Assuming the 90 days trading horizon Immobel is expected to generate 60.38 times less return on investment than Celyad SA. But when comparing it to its historical volatility, Immobel is 4.41 times less risky than Celyad SA. It trades about 0.01 of its potential returns per unit of risk. Celyad SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Celyad SA on September 14, 2024 and sell it today you would earn a total of 23.00 from holding Celyad SA or generate 46.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immobel vs. Celyad SA
Performance |
| Timeline |
| Immobel |
| Celyad SA |
Immobel and Celyad SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immobel and Celyad SA
The main advantage of trading using opposite Immobel and Celyad SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immobel position performs unexpectedly, Celyad 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 Celyad SA will offset losses from the drop in Celyad SA's long position.The idea behind Immobel and Celyad SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Celyad SA vs. Immolease Trust NV | Celyad SA vs. Shurgard Self Storage | Celyad SA vs. Retail Estates | Celyad SA vs. Home Invest Belgium |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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