Correlation Between Liontrust Asset and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Liontrust Asset and Compagnie Plastic 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 Liontrust Asset and Compagnie Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liontrust Asset Management and Compagnie Plastic Omnium, you can compare the effects of market volatilities on Liontrust Asset and Compagnie Plastic 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 Liontrust Asset with a short position of Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liontrust Asset and Compagnie Plastic.
Diversification Opportunities for Liontrust Asset and Compagnie Plastic
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liontrust and Compagnie is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Liontrust Asset Management and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium and Liontrust Asset 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 Liontrust Asset Management are associated (or correlated) with Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of Liontrust Asset i.e., Liontrust Asset and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Liontrust Asset and Compagnie Plastic
Assuming the 90 days trading horizon Liontrust Asset Management is expected to generate 0.99 times more return on investment than Compagnie Plastic. However, Liontrust Asset Management is 1.01 times less risky than Compagnie Plastic. It trades about 0.0 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.04 per unit of risk. If you would invest 47,137 in Liontrust Asset Management on September 3, 2024 and sell it today you would lose (2,987) from holding Liontrust Asset Management or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liontrust Asset Management vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Liontrust Asset Mana |
| Compagnie Plastic Omnium |
Liontrust Asset and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liontrust Asset and Compagnie Plastic
The main advantage of trading using opposite Liontrust Asset and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liontrust Asset position performs unexpectedly, Compagnie Plastic 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 Plastic will offset losses from the drop in Compagnie Plastic's long position.| Liontrust Asset vs. MT Bank Corp | Liontrust Asset vs. JD Sports Fashion | Liontrust Asset vs. UNIQA Insurance Group | Liontrust Asset vs. Sparebank 1 SR |
| Compagnie Plastic vs. Catalyst Media Group | Compagnie Plastic vs. CATLIN GROUP | Compagnie Plastic vs. RTW Venture Fund | Compagnie Plastic vs. Secure Property Development |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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