Correlation Between Poxel SA and Caisse Rgionale
Can any of the company-specific risk be diversified away by investing in both Poxel SA and Caisse Rgionale 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 Poxel SA and Caisse Rgionale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poxel SA and Caisse Rgionale du, you can compare the effects of market volatilities on Poxel SA and Caisse Rgionale 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 Poxel SA with a short position of Caisse Rgionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poxel SA and Caisse Rgionale.
Diversification Opportunities for Poxel SA and Caisse Rgionale
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Poxel and Caisse is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Poxel SA and Caisse Rgionale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Rgionale du and Poxel SA 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 Poxel SA are associated (or correlated) with Caisse Rgionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Rgionale du has no effect on the direction of Poxel SA i.e., Poxel SA and Caisse Rgionale go up and down completely randomly.
Pair Corralation between Poxel SA and Caisse Rgionale
Assuming the 90 days trading horizon Poxel SA is expected to under-perform the Caisse Rgionale. In addition to that, Poxel SA is 4.77 times more volatile than Caisse Rgionale du. It trades about -0.03 of its total potential returns per unit of risk. Caisse Rgionale du is currently generating about 0.07 per unit of volatility. If you would invest 5,351 in Caisse Rgionale du on August 27, 2024 and sell it today you would earn a total of 2,649 from holding Caisse Rgionale du or generate 49.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poxel SA vs. Caisse Rgionale du
Performance |
| Timeline |
| Poxel SA |
| Caisse Rgionale du |
Poxel SA and Caisse Rgionale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poxel SA and Caisse Rgionale
The main advantage of trading using opposite Poxel SA and Caisse Rgionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poxel SA position performs unexpectedly, Caisse Rgionale 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 Rgionale will offset losses from the drop in Caisse Rgionale's long position.| Poxel SA vs. Axway Software | Poxel SA vs. Gaztransport Technigaz SAS | Poxel SA vs. ZCCM Investments Holdings | Poxel SA vs. Mediantechn |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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