Correlation Between SCOR SE and Mtropole Tlvision
Can any of the company-specific risk be diversified away by investing in both SCOR SE and Mtropole Tlvision 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 SCOR SE and Mtropole Tlvision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR SE and Mtropole Tlvision SA, you can compare the effects of market volatilities on SCOR SE and Mtropole Tlvision 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 SCOR SE with a short position of Mtropole Tlvision. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR SE and Mtropole Tlvision.
Diversification Opportunities for SCOR SE and Mtropole Tlvision
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCOR and Mtropole is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding SCOR SE and Mtropole Tlvision SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mtropole Tlvision and SCOR SE 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 SCOR SE are associated (or correlated) with Mtropole Tlvision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mtropole Tlvision has no effect on the direction of SCOR SE i.e., SCOR SE and Mtropole Tlvision go up and down completely randomly.
Pair Corralation between SCOR SE and Mtropole Tlvision
Assuming the 90 days trading horizon SCOR SE is expected to generate 2.03 times more return on investment than Mtropole Tlvision. However, SCOR SE is 2.03 times more volatile than Mtropole Tlvision SA. It trades about 0.29 of its potential returns per unit of risk. Mtropole Tlvision SA is currently generating about -0.35 per unit of risk. If you would invest 2,028 in SCOR SE on August 28, 2024 and sell it today you would earn a total of 334.00 from holding SCOR SE or generate 16.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOR SE vs. Mtropole Tlvision SA
Performance |
| Timeline |
| SCOR SE |
| Mtropole Tlvision |
SCOR SE and Mtropole Tlvision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR SE and Mtropole Tlvision
The main advantage of trading using opposite SCOR SE and Mtropole Tlvision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR SE position performs unexpectedly, Mtropole Tlvision 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 Mtropole Tlvision will offset losses from the drop in Mtropole Tlvision's long position.The idea behind SCOR SE and Mtropole Tlvision SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mtropole Tlvision vs. Television Francaise 1 | Mtropole Tlvision vs. Nexity | Mtropole Tlvision vs. Lagardere SCA | Mtropole Tlvision vs. Eutelsat Communications 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |