Correlation Between NRJ and VIEL Cie
Can any of the company-specific risk be diversified away by investing in both NRJ and VIEL Cie 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 VIEL Cie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRJ Group and VIEL Cie socit, you can compare the effects of market volatilities on NRJ and VIEL Cie 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 VIEL Cie. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRJ and VIEL Cie.
Diversification Opportunities for NRJ and VIEL Cie
Excellent diversification
The 3 months correlation between NRJ and VIEL is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding NRJ Group and VIEL Cie socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIEL Cie socit 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 VIEL Cie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIEL Cie socit has no effect on the direction of NRJ i.e., NRJ and VIEL Cie go up and down completely randomly.
Pair Corralation between NRJ and VIEL Cie
Assuming the 90 days trading horizon NRJ Group is expected to under-perform the VIEL Cie. But the stock apears to be less risky and, when comparing its historical volatility, NRJ Group is 1.07 times less risky than VIEL Cie. The stock trades about -0.36 of its potential returns per unit of risk. The VIEL Cie socit is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,070 in VIEL Cie socit on August 29, 2024 and sell it today you would earn a total of 25.00 from holding VIEL Cie socit or generate 2.34% 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. VIEL Cie socit
Performance |
| Timeline |
| NRJ Group |
| VIEL Cie socit |
NRJ and VIEL Cie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRJ and VIEL Cie
The main advantage of trading using opposite NRJ and VIEL Cie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRJ position performs unexpectedly, VIEL Cie 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 VIEL Cie will offset losses from the drop in VIEL Cie's long position.| NRJ vs. Television Francaise 1 | NRJ vs. Mtropole Tlvision SA | NRJ vs. Haulotte Group SA | NRJ vs. VIEL Cie socit |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets |