Correlation Between Lectra SA and ACTEOS SA
Can any of the company-specific risk be diversified away by investing in both Lectra SA 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 Lectra SA and ACTEOS SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lectra SA and ACTEOS SA, you can compare the effects of market volatilities on Lectra SA 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 Lectra SA with a short position of ACTEOS SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lectra SA and ACTEOS SA.
Diversification Opportunities for Lectra SA and ACTEOS SA
Very weak diversification
The 3 months correlation between Lectra and ACTEOS is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lectra SA and ACTEOS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACTEOS SA and Lectra SA 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 Lectra SA 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 Lectra SA i.e., Lectra SA and ACTEOS SA go up and down completely randomly.
Pair Corralation between Lectra SA and ACTEOS SA
Assuming the 90 days trading horizon Lectra SA is expected to generate 0.77 times more return on investment than ACTEOS SA. However, Lectra SA is 1.3 times less risky than ACTEOS SA. It trades about -0.02 of its potential returns per unit of risk. ACTEOS SA is currently generating about -0.02 per unit of risk. If you would invest 3,144 in Lectra SA on November 3, 2024 and sell it today you would lose (459.00) from holding Lectra SA or give up 14.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lectra SA vs. ACTEOS SA
Performance |
| Timeline |
| Lectra SA |
| ACTEOS SA |
Lectra SA and ACTEOS SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lectra SA and ACTEOS SA
The main advantage of trading using opposite Lectra SA and ACTEOS SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lectra SA 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.| Lectra SA vs. Linedata Services SA | Lectra SA vs. Interparfums SA | Lectra SA vs. Esker SA | Lectra SA vs. Neurones |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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