Correlation Between Eurazeo and OVH Groupe
Can any of the company-specific risk be diversified away by investing in both Eurazeo and OVH Groupe 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 OVH Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurazeo and OVH Groupe SAS, you can compare the effects of market volatilities on Eurazeo and OVH Groupe 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 OVH Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurazeo and OVH Groupe.
Diversification Opportunities for Eurazeo and OVH Groupe
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eurazeo and OVH is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Eurazeo and OVH Groupe SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OVH Groupe SAS 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 OVH Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OVH Groupe SAS has no effect on the direction of Eurazeo i.e., Eurazeo and OVH Groupe go up and down completely randomly.
Pair Corralation between Eurazeo and OVH Groupe
Assuming the 90 days horizon Eurazeo is expected to generate 11.57 times less return on investment than OVH Groupe. But when comparing it to its historical volatility, Eurazeo is 2.18 times less risky than OVH Groupe. It trades about 0.0 of its potential returns per unit of risk. OVH Groupe SAS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 883.00 in OVH Groupe SAS on September 3, 2024 and sell it today you would lose (50.00) from holding OVH Groupe SAS or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurazeo vs. OVH Groupe SAS
Performance |
| Timeline |
| Eurazeo |
| OVH Groupe SAS |
Eurazeo and OVH Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurazeo and OVH Groupe
The main advantage of trading using opposite Eurazeo and OVH Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurazeo position performs unexpectedly, OVH Groupe 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 OVH Groupe will offset losses from the drop in OVH Groupe's long position.| Eurazeo vs. Wendel | Eurazeo vs. Groep Brussel Lambert | Eurazeo vs. Ackermans Van Haaren | Eurazeo vs. SEB SA |
| OVH Groupe vs. La Francaise Des | OVH Groupe vs. TotalEnergies SE | OVH Groupe vs. Worldline SA | OVH Groupe vs. Atos SE |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets |