Correlation Between Quanta Services and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both Quanta Services 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 Quanta Services and Eiffage SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanta Services and Eiffage SA ADR, you can compare the effects of market volatilities on Quanta Services 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 Quanta Services with a short position of Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanta Services and Eiffage SA.
Diversification Opportunities for Quanta Services and Eiffage SA
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Quanta and Eiffage is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Quanta Services 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 Quanta Services 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 Quanta Services 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 Quanta Services i.e., Quanta Services and Eiffage SA go up and down completely randomly.
Pair Corralation between Quanta Services and Eiffage SA
Considering the 90-day investment horizon Quanta Services is expected to generate 0.52 times more return on investment than Eiffage SA. However, Quanta Services is 1.91 times less risky than Eiffage SA. It trades about 0.41 of its potential returns per unit of risk. Eiffage SA ADR is currently generating about -0.12 per unit of risk. If you would invest 30,432 in Quanta Services on September 4, 2024 and sell it today you would earn a total of 3,801 from holding Quanta Services or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quanta Services vs. Eiffage SA ADR
Performance |
| Timeline |
| Quanta Services |
| Eiffage SA ADR |
Quanta Services and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanta Services and Eiffage SA
The main advantage of trading using opposite Quanta Services and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanta Services 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.| Quanta Services vs. MYR Group | Quanta Services vs. Dycom Industries | Quanta Services vs. EMCOR Group | Quanta Services vs. Comfort Systems USA |
| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. ACS Actividades de | Eiffage SA vs. ACS Actividades De | Eiffage SA vs. Badger Infrastructure Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |