Correlation Between Lagardere SCA and SES S
Can any of the company-specific risk be diversified away by investing in both Lagardere SCA and SES S 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 Lagardere SCA and SES S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lagardere SCA and SES S A, you can compare the effects of market volatilities on Lagardere SCA and SES S 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 Lagardere SCA with a short position of SES S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagardere SCA and SES S.
Diversification Opportunities for Lagardere SCA and SES S
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lagardere and SES is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lagardere SCA and SES S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES S A and Lagardere SCA 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 Lagardere SCA are associated (or correlated) with SES S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES S A has no effect on the direction of Lagardere SCA i.e., Lagardere SCA and SES S go up and down completely randomly.
Pair Corralation between Lagardere SCA and SES S
Assuming the 90 days trading horizon Lagardere SCA is expected to generate 15.26 times less return on investment than SES S. But when comparing it to its historical volatility, Lagardere SCA is 1.83 times less risky than SES S. It trades about 0.0 of its potential returns per unit of risk. SES S A is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 477.00 in SES S A on January 16, 2025 and sell it today you would earn a total of 26.00 from holding SES S A or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lagardere SCA vs. SES S A
Performance |
| Timeline |
| Lagardere SCA |
| SES S A |
Lagardere SCA and SES S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagardere SCA and SES S
The main advantage of trading using opposite Lagardere SCA and SES S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagardere SCA position performs unexpectedly, SES S 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 SES S will offset losses from the drop in SES S's long position.| Lagardere SCA vs. Television Francaise 1 | Lagardere SCA vs. Publicis Groupe SA | Lagardere SCA vs. Bouygues SA | Lagardere SCA vs. Accor S A |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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