Correlation Between CBRE Group and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both CBRE Group and Socit Gnrale 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 CBRE Group and Socit Gnrale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBRE Group Class and Socit Gnrale Socit, you can compare the effects of market volatilities on CBRE Group and Socit Gnrale 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 CBRE Group with a short position of Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBRE Group and Socit Gnrale.
Diversification Opportunities for CBRE Group and Socit Gnrale
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CBRE and Socit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CBRE Group Class and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit and CBRE Group 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 CBRE Group Class are associated (or correlated) with Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of CBRE Group i.e., CBRE Group and Socit Gnrale go up and down completely randomly.
Pair Corralation between CBRE Group and Socit Gnrale
Assuming the 90 days horizon CBRE Group Class is expected to generate 0.97 times more return on investment than Socit Gnrale. However, CBRE Group Class is 1.03 times less risky than Socit Gnrale. It trades about 0.21 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about -0.02 per unit of risk. If you would invest 7,950 in CBRE Group Class on August 29, 2024 and sell it today you would earn a total of 5,250 from holding CBRE Group Class or generate 66.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBRE Group Class vs. Socit Gnrale Socit
Performance |
| Timeline |
| CBRE Group Class |
| Socit Gnrale Socit |
CBRE Group and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBRE Group and Socit Gnrale
The main advantage of trading using opposite CBRE Group and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBRE Group position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.| CBRE Group vs. Rayonier Advanced Materials | CBRE Group vs. Plastic Omnium | CBRE Group vs. SERI INDUSTRIAL EO | CBRE Group vs. Lion One Metals |
| Socit Gnrale vs. BNP Paribas SA | Socit Gnrale vs. Deutsche Bank Aktiengesellschaft | Socit Gnrale vs. Santander Bank Polska |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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