Correlation Between SES SA and VIVENDI UNSPONARD
Can any of the company-specific risk be diversified away by investing in both SES SA and VIVENDI UNSPONARD 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 SES SA and VIVENDI UNSPONARD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SES SA and VIVENDI UNSPONARD EO, you can compare the effects of market volatilities on SES SA and VIVENDI UNSPONARD 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 SES SA with a short position of VIVENDI UNSPONARD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SES SA and VIVENDI UNSPONARD.
Diversification Opportunities for SES SA and VIVENDI UNSPONARD
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SES and VIVENDI is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SES SA and VIVENDI UNSPONARD EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVENDI UNSPONARD and SES 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 SES SA are associated (or correlated) with VIVENDI UNSPONARD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVENDI UNSPONARD has no effect on the direction of SES SA i.e., SES SA and VIVENDI UNSPONARD go up and down completely randomly.
Pair Corralation between SES SA and VIVENDI UNSPONARD
Assuming the 90 days horizon SES SA is expected to under-perform the VIVENDI UNSPONARD. In addition to that, SES SA is 1.18 times more volatile than VIVENDI UNSPONARD EO. It trades about -0.05 of its total potential returns per unit of risk. VIVENDI UNSPONARD EO is currently generating about -0.01 per unit of volatility. If you would invest 885.00 in VIVENDI UNSPONARD EO on October 20, 2024 and sell it today you would lose (175.00) from holding VIVENDI UNSPONARD EO or give up 19.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SES SA vs. VIVENDI UNSPONARD EO
Performance |
| Timeline |
| SES SA |
| VIVENDI UNSPONARD |
SES SA and VIVENDI UNSPONARD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SES SA and VIVENDI UNSPONARD
The main advantage of trading using opposite SES SA and VIVENDI UNSPONARD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SES SA position performs unexpectedly, VIVENDI UNSPONARD 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 VIVENDI UNSPONARD will offset losses from the drop in VIVENDI UNSPONARD's long position.| SES SA vs. Canon Marketing Japan | SES SA vs. TRADEGATE | SES SA vs. HK Electric Investments | SES SA vs. FIRST SAVINGS FINL |
| VIVENDI UNSPONARD vs. News Corporation | VIVENDI UNSPONARD vs. News Corporation | VIVENDI UNSPONARD vs. RTL Group SA | VIVENDI UNSPONARD vs. Nexstar Media Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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