Correlation Between NRJ and Acanthe Dveloppement
Can any of the company-specific risk be diversified away by investing in both NRJ and Acanthe Dveloppement 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 NRJ and Acanthe Dveloppement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRJ Group and Acanthe Dveloppement, you can compare the effects of market volatilities on NRJ and Acanthe Dveloppement 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 NRJ with a short position of Acanthe Dveloppement. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRJ and Acanthe Dveloppement.
Diversification Opportunities for NRJ and Acanthe Dveloppement
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NRJ and Acanthe is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding NRJ Group and Acanthe Dveloppement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acanthe Dveloppement and NRJ 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 NRJ Group are associated (or correlated) with Acanthe Dveloppement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acanthe Dveloppement has no effect on the direction of NRJ i.e., NRJ and Acanthe Dveloppement go up and down completely randomly.
Pair Corralation between NRJ and Acanthe Dveloppement
Assuming the 90 days trading horizon NRJ is expected to generate 9.09 times less return on investment than Acanthe Dveloppement. But when comparing it to its historical volatility, NRJ Group is 6.72 times less risky than Acanthe Dveloppement. It trades about 0.04 of its potential returns per unit of risk. Acanthe Dveloppement is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Acanthe Dveloppement on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Acanthe Dveloppement or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.81% |
| Values | Daily Returns |
NRJ Group vs. Acanthe Dveloppement
Performance |
| Timeline |
| NRJ Group |
| Acanthe Dveloppement |
NRJ and Acanthe Dveloppement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRJ and Acanthe Dveloppement
The main advantage of trading using opposite NRJ and Acanthe Dveloppement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRJ position performs unexpectedly, Acanthe Dveloppement 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 Acanthe Dveloppement will offset losses from the drop in Acanthe Dveloppement's long position.| NRJ vs. Television Francaise 1 | NRJ vs. Mtropole Tlvision SA | NRJ vs. Haulotte Group SA | NRJ vs. VIEL Cie socit |
| Acanthe Dveloppement vs. Gecina SA | Acanthe Dveloppement vs. Icade SA | Acanthe Dveloppement vs. Altarea SCA | Acanthe Dveloppement vs. Mercialys SA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |