Correlation Between Mulberry Group and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Mulberry Group 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 Mulberry Group and Compagnie Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mulberry Group PLC and Compagnie Plastic Omnium, you can compare the effects of market volatilities on Mulberry Group 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 Mulberry Group with a short position of Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mulberry Group and Compagnie Plastic.
Diversification Opportunities for Mulberry Group and Compagnie Plastic
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mulberry and Compagnie is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mulberry Group PLC 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 Mulberry Group 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 Mulberry Group PLC 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 Mulberry Group i.e., Mulberry Group and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Mulberry Group and Compagnie Plastic
Assuming the 90 days trading horizon Mulberry Group PLC is expected to under-perform the Compagnie Plastic. In addition to that, Mulberry Group is 1.36 times more volatile than Compagnie Plastic Omnium. It trades about -0.1 of its total potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.05 per unit of volatility. If you would invest 904.00 in Compagnie Plastic Omnium on September 1, 2024 and sell it today you would lose (39.00) from holding Compagnie Plastic Omnium or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mulberry Group PLC vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Mulberry Group PLC |
| Compagnie Plastic Omnium |
Mulberry Group and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mulberry Group and Compagnie Plastic
The main advantage of trading using opposite Mulberry Group and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mulberry Group 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.| Mulberry Group vs. Auto Trader Group | Mulberry Group vs. Diversified Energy | Mulberry Group vs. Air Products Chemicals | Mulberry Group vs. Lowland Investment Co |
| Compagnie Plastic vs. Uniper SE | Compagnie Plastic vs. Mulberry Group PLC | Compagnie Plastic vs. London Security Plc | Compagnie Plastic vs. Triad Group PLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |