Correlation Between NRJ and Caisse Regionale
Can any of the company-specific risk be diversified away by investing in both NRJ and Caisse Regionale 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 Caisse Regionale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRJ Group and Caisse Regionale De, you can compare the effects of market volatilities on NRJ and Caisse Regionale 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 Caisse Regionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRJ and Caisse Regionale.
Diversification Opportunities for NRJ and Caisse Regionale
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NRJ and Caisse is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding NRJ Group and Caisse Regionale De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale 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 Caisse Regionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Regionale has no effect on the direction of NRJ i.e., NRJ and Caisse Regionale go up and down completely randomly.
Pair Corralation between NRJ and Caisse Regionale
Assuming the 90 days trading horizon NRJ Group is expected to generate 1.14 times more return on investment than Caisse Regionale. However, NRJ is 1.14 times more volatile than Caisse Regionale De. It trades about 0.04 of its potential returns per unit of risk. Caisse Regionale De is currently generating about 0.03 per unit of risk. If you would invest 581.00 in NRJ Group on August 27, 2024 and sell it today you would earn a total of 117.00 from holding NRJ Group or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NRJ Group vs. Caisse Regionale De
Performance |
| Timeline |
| NRJ Group |
| Caisse Regionale |
NRJ and Caisse Regionale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRJ and Caisse Regionale
The main advantage of trading using opposite NRJ and Caisse Regionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRJ position performs unexpectedly, Caisse Regionale 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 Caisse Regionale will offset losses from the drop in Caisse Regionale's long position.| NRJ vs. Television Francaise 1 | NRJ vs. Mtropole Tlvision SA | NRJ vs. Haulotte Group SA | NRJ vs. VIEL Cie socit |
| Caisse Regionale vs. Caisse Regionale de | Caisse Regionale vs. Caisse rgionale de | Caisse Regionale vs. Caisse Rgionale du |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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