Correlation Between Samse SA and FreelanceCom
Can any of the company-specific risk be diversified away by investing in both Samse SA and FreelanceCom 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 Samse SA and FreelanceCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samse SA and FreelanceCom, you can compare the effects of market volatilities on Samse SA and FreelanceCom 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 Samse SA with a short position of FreelanceCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samse SA and FreelanceCom.
Diversification Opportunities for Samse SA and FreelanceCom
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samse and FreelanceCom is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samse SA and FreelanceCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FreelanceCom and Samse SA 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 Samse SA are associated (or correlated) with FreelanceCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FreelanceCom has no effect on the direction of Samse SA i.e., Samse SA and FreelanceCom go up and down completely randomly.
Pair Corralation between Samse SA and FreelanceCom
Assuming the 90 days trading horizon Samse SA is expected to under-perform the FreelanceCom. But the stock apears to be less risky and, when comparing its historical volatility, Samse SA is 1.1 times less risky than FreelanceCom. The stock trades about -0.03 of its potential returns per unit of risk. The FreelanceCom is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 270.00 in FreelanceCom on September 22, 2024 and sell it today you would earn a total of 8.00 from holding FreelanceCom or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samse SA vs. FreelanceCom
Performance |
| Timeline |
| Samse SA |
| FreelanceCom |
Samse SA and FreelanceCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samse SA and FreelanceCom
The main advantage of trading using opposite Samse SA and FreelanceCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samse SA position performs unexpectedly, FreelanceCom 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 FreelanceCom will offset losses from the drop in FreelanceCom's long position.| Samse SA vs. ATEME SA | Samse SA vs. Figeac Aero SA | Samse SA vs. Chargeurs SA | Samse SA vs. Xilam Animation |
| FreelanceCom vs. Thermador Groupe SA | FreelanceCom vs. Samse SA | FreelanceCom vs. Rubis SCA | FreelanceCom vs. Trigano 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |