Correlation Between Seche Environnem and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both Seche Environnem and Credit Agricole 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 Seche Environnem and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seche Environnem and Credit Agricole SA, you can compare the effects of market volatilities on Seche Environnem and Credit Agricole 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 Seche Environnem with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seche Environnem and Credit Agricole.
Diversification Opportunities for Seche Environnem and Credit Agricole
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seche and Credit is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnem and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and Seche Environnem 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 Seche Environnem are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of Seche Environnem i.e., Seche Environnem and Credit Agricole go up and down completely randomly.
Pair Corralation between Seche Environnem and Credit Agricole
Assuming the 90 days trading horizon Seche Environnem is expected to under-perform the Credit Agricole. In addition to that, Seche Environnem is 1.51 times more volatile than Credit Agricole SA. It trades about 0.0 of its total potential returns per unit of risk. Credit Agricole SA is currently generating about 0.08 per unit of volatility. If you would invest 824.00 in Credit Agricole SA on September 4, 2024 and sell it today you would earn a total of 432.00 from holding Credit Agricole SA or generate 52.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seche Environnem vs. Credit Agricole SA
Performance |
| Timeline |
| Seche Environnem |
| Credit Agricole SA |
Seche Environnem and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seche Environnem and Credit Agricole
The main advantage of trading using opposite Seche Environnem and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnem position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.| Seche Environnem vs. Avenir Telecom SA | Seche Environnem vs. Mauna Kea Technologies | Seche Environnem vs. Veolia Environnement VE | Seche Environnem vs. Union Technologies Informatique |
| Credit Agricole vs. Societe Generale SA | Credit Agricole vs. BNP Paribas SA | Credit Agricole vs. AXA SA | Credit Agricole vs. Orange 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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