Correlation Between SERI INDUSTRIAL and JCDecaux
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and JCDecaux 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 SERI INDUSTRIAL and JCDecaux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and JCDecaux SA, you can compare the effects of market volatilities on SERI INDUSTRIAL and JCDecaux 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 SERI INDUSTRIAL with a short position of JCDecaux. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and JCDecaux.
Diversification Opportunities for SERI INDUSTRIAL and JCDecaux
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SERI and JCDecaux is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and JCDecaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCDecaux SA and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with JCDecaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCDecaux SA has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and JCDecaux go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and JCDecaux
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the JCDecaux. In addition to that, SERI INDUSTRIAL is 1.96 times more volatile than JCDecaux SA. It trades about -0.44 of its total potential returns per unit of risk. JCDecaux SA is currently generating about 0.08 per unit of volatility. If you would invest 1,441 in JCDecaux SA on September 25, 2024 and sell it today you would earn a total of 36.00 from holding JCDecaux SA or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. JCDecaux SA
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| JCDecaux SA |
SERI INDUSTRIAL and JCDecaux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and JCDecaux
The main advantage of trading using opposite SERI INDUSTRIAL and JCDecaux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL position performs unexpectedly, JCDecaux 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 JCDecaux will offset losses from the drop in JCDecaux's long position.| SERI INDUSTRIAL vs. Pebblebrook Hotel Trust | SERI INDUSTRIAL vs. MHP Hotel AG | SERI INDUSTRIAL vs. MELIA HOTELS | SERI INDUSTRIAL vs. InterContinental Hotels Group |
| JCDecaux vs. Publicis Groupe SA | JCDecaux vs. Omnicom Group | JCDecaux vs. WPP PLC | JCDecaux vs. WPP PLC ADR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |