Correlation Between Passat Socit and NRJ
Can any of the company-specific risk be diversified away by investing in both Passat Socit and NRJ 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 Passat Socit and NRJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passat Socit Anonyme and NRJ Group, you can compare the effects of market volatilities on Passat Socit and NRJ 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 Passat Socit with a short position of NRJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passat Socit and NRJ.
Diversification Opportunities for Passat Socit and NRJ
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Passat and NRJ is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Passat Socit Anonyme and NRJ Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRJ Group and Passat Socit 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 Passat Socit Anonyme are associated (or correlated) with NRJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRJ Group has no effect on the direction of Passat Socit i.e., Passat Socit and NRJ go up and down completely randomly.
Pair Corralation between Passat Socit and NRJ
Assuming the 90 days trading horizon Passat Socit Anonyme is expected to under-perform the NRJ. In addition to that, Passat Socit is 1.5 times more volatile than NRJ Group. It trades about -0.08 of its total potential returns per unit of risk. NRJ Group is currently generating about -0.04 per unit of volatility. If you would invest 766.00 in NRJ Group on August 29, 2024 and sell it today you would lose (68.00) from holding NRJ Group or give up 8.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Passat Socit Anonyme vs. NRJ Group
Performance |
| Timeline |
| Passat Socit Anonyme |
| NRJ Group |
Passat Socit and NRJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passat Socit and NRJ
The main advantage of trading using opposite Passat Socit and NRJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passat Socit position performs unexpectedly, NRJ 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 NRJ will offset losses from the drop in NRJ's long position.| Passat Socit vs. Groupe Partouche SA | Passat Socit vs. Gevelot | Passat Socit vs. Plastiques du Val | Passat Socit vs. Trilogiq |
| 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.
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