Correlation Between Shell PLC and CVC Capital
Can any of the company-specific risk be diversified away by investing in both Shell PLC and CVC Capital 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 Shell PLC and CVC Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shell PLC and CVC Capital Partners, you can compare the effects of market volatilities on Shell PLC and CVC Capital 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 Shell PLC with a short position of CVC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shell PLC and CVC Capital.
Diversification Opportunities for Shell PLC and CVC Capital
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shell and CVC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shell PLC and CVC Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVC Capital Partners and Shell PLC 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 Shell PLC are associated (or correlated) with CVC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVC Capital Partners has no effect on the direction of Shell PLC i.e., Shell PLC and CVC Capital go up and down completely randomly.
Pair Corralation between Shell PLC and CVC Capital
Assuming the 90 days trading horizon Shell PLC is expected to generate 0.63 times more return on investment than CVC Capital. However, Shell PLC is 1.59 times less risky than CVC Capital. It trades about 0.06 of its potential returns per unit of risk. CVC Capital Partners is currently generating about -0.04 per unit of risk. If you would invest 3,209 in Shell PLC on November 20, 2025 and sell it today you would earn a total of 155.00 from holding Shell PLC or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shell PLC vs. CVC Capital Partners
Performance |
| Timeline |
| Shell PLC |
| CVC Capital Partners |
Shell PLC and CVC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shell PLC and CVC Capital
The main advantage of trading using opposite Shell PLC and CVC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shell PLC position performs unexpectedly, CVC Capital 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 CVC Capital will offset losses from the drop in CVC Capital's long position.| Shell PLC vs. Koninklijke Ahold Delhaize | Shell PLC vs. Unilever PLC | Shell PLC vs. ING Groep NV | Shell PLC vs. ASML Holding NV |
| CVC Capital vs. NN Group NV | CVC Capital vs. ASR Nederland NV | CVC Capital vs. ABN Amro Group | CVC Capital vs. Value8 NV |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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