Correlation Between Eurazeo and Antin IP
Can any of the company-specific risk be diversified away by investing in both Eurazeo and Antin IP 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 Eurazeo and Antin IP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurazeo and Antin IP SA, you can compare the effects of market volatilities on Eurazeo and Antin IP 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 Eurazeo with a short position of Antin IP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurazeo and Antin IP.
Diversification Opportunities for Eurazeo and Antin IP
Very weak diversification
The 3 months correlation between Eurazeo and Antin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eurazeo and Antin IP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antin IP SA and Eurazeo 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 Eurazeo are associated (or correlated) with Antin IP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antin IP SA has no effect on the direction of Eurazeo i.e., Eurazeo and Antin IP go up and down completely randomly.
Pair Corralation between Eurazeo and Antin IP
Assuming the 90 days horizon Eurazeo is expected to generate 0.61 times more return on investment than Antin IP. However, Eurazeo is 1.63 times less risky than Antin IP. It trades about 0.0 of its potential returns per unit of risk. Antin IP SA is currently generating about 0.0 per unit of risk. If you would invest 6,835 in Eurazeo on September 3, 2024 and sell it today you would lose (150.00) from holding Eurazeo or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurazeo vs. Antin IP SA
Performance |
| Timeline |
| Eurazeo |
| Antin IP SA |
Eurazeo and Antin IP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurazeo and Antin IP
The main advantage of trading using opposite Eurazeo and Antin IP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurazeo position performs unexpectedly, Antin IP 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 Antin IP will offset losses from the drop in Antin IP's long position.| Eurazeo vs. Wendel | Eurazeo vs. Groep Brussel Lambert | Eurazeo vs. Ackermans Van Haaren | Eurazeo vs. SEB SA |
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 Directory module to find actively traded commodities issued by global exchanges.
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