Correlation Between Soitec SA and Neoen SA
Can any of the company-specific risk be diversified away by investing in both Soitec SA and Neoen SA 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 Soitec SA and Neoen SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soitec SA and Neoen SA, you can compare the effects of market volatilities on Soitec SA and Neoen SA 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 Soitec SA with a short position of Neoen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soitec SA and Neoen SA.
Diversification Opportunities for Soitec SA and Neoen SA
Pay attention - limited upside
The 3 months correlation between Soitec and Neoen is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Soitec SA and Neoen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neoen SA and Soitec 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 Soitec SA are associated (or correlated) with Neoen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neoen SA has no effect on the direction of Soitec SA i.e., Soitec SA and Neoen SA go up and down completely randomly.
Pair Corralation between Soitec SA and Neoen SA
Assuming the 90 days trading horizon Soitec SA is expected to under-perform the Neoen SA. In addition to that, Soitec SA is 24.53 times more volatile than Neoen SA. It trades about -0.05 of its total potential returns per unit of risk. Neoen SA is currently generating about 0.1 per unit of volatility. If you would invest 3,933 in Neoen SA on August 27, 2024 and sell it today you would earn a total of 12.00 from holding Neoen SA or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soitec SA vs. Neoen SA
Performance |
| Timeline |
| Soitec SA |
| Neoen SA |
Soitec SA and Neoen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soitec SA and Neoen SA
The main advantage of trading using opposite Soitec SA and Neoen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soitec SA position performs unexpectedly, Neoen SA 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 Neoen SA will offset losses from the drop in Neoen SA's long position.| Soitec SA vs. Kalray SA | Soitec SA vs. Lacroix Group SA | Soitec SA vs. Ekinops SA | Soitec SA vs. Plastiques du Val |
| Neoen SA vs. Voltalia SA | Neoen SA vs. Gaztransport Technigaz SAS | Neoen SA vs. Worldline SA | Neoen SA vs. Rubis SCA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |