Correlation Between Sumo Resources and Compagnie
Can any of the company-specific risk be diversified away by investing in both Sumo Resources 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 Sumo Resources and Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumo Resources PLC and Compagnie Du Mont Blanc, you can compare the effects of market volatilities on Sumo Resources 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 Sumo Resources with a short position of Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumo Resources and Compagnie.
Diversification Opportunities for Sumo Resources and Compagnie
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sumo and Compagnie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sumo Resources PLC and Compagnie Du Mont Blanc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Du Mont and Sumo Resources 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 Sumo Resources PLC 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 Du Mont has no effect on the direction of Sumo Resources i.e., Sumo Resources and Compagnie go up and down completely randomly.
Pair Corralation between Sumo Resources and Compagnie
If you would invest 12,270 in Compagnie Du Mont Blanc on September 12, 2024 and sell it today you would earn a total of 2,730 from holding Compagnie Du Mont Blanc or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sumo Resources PLC vs. Compagnie Du Mont Blanc
Performance |
| Timeline |
| Sumo Resources PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Compagnie Du Mont |
Sumo Resources and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumo Resources and Compagnie
The main advantage of trading using opposite Sumo Resources and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumo Resources 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.| Sumo Resources vs. FIPP SA | Sumo Resources vs. Roctool | Sumo Resources vs. Lexibook Linguistic Electronic | Sumo Resources vs. Witbe Net SA |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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