Correlation Between NYSE Composite and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Eiffage SA 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 NYSE Composite and Eiffage SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Eiffage SA ADR, you can compare the effects of market volatilities on NYSE Composite and Eiffage SA 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 NYSE Composite with a short position of Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Eiffage SA.
Diversification Opportunities for NYSE Composite and Eiffage SA
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Eiffage is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Eiffage SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA ADR and NYSE Composite 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 NYSE Composite are associated (or correlated) with Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA ADR has no effect on the direction of NYSE Composite i.e., NYSE Composite and Eiffage SA go up and down completely randomly.
Pair Corralation between NYSE Composite and Eiffage SA
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Eiffage SA. In addition to that, NYSE Composite is 1.13 times more volatile than Eiffage SA ADR. It trades about -0.12 of its total potential returns per unit of risk. Eiffage SA ADR is currently generating about 0.02 per unit of volatility. If you would invest 2,370 in Eiffage SA ADR on January 14, 2025 and sell it today you would earn a total of 6.00 from holding Eiffage SA ADR or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Eiffage SA ADR
Performance |
| Timeline |
NYSE Composite and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Eiffage SA ADR
Pair trading matchups for Eiffage SA
Pair Trading with NYSE Composite and Eiffage SA
The main advantage of trading using opposite NYSE Composite and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Eiffage SA 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 Eiffage SA will offset losses from the drop in Eiffage SA's long position.| NYSE Composite vs. Vinci Partners Investments | NYSE Composite vs. Gladstone Investment | NYSE Composite vs. Greentown Management Holdings | NYSE Composite vs. Avient Corp |
| Eiffage SA vs. Aecon Group | Eiffage SA vs. Argan Inc | Eiffage SA vs. KBR Inc | Eiffage SA vs. Reliant Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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